UP has become the latest state to cancel the winning bids for 184 MW discovered through bidding last year in February. The solar power bodies stated that cancellation of bid and attempt of renegotiation by the states affects the image of India among foreign investors.

The Uttar New and Renewable Energy Development Agency (UPNEDA) has informed the cancellation by letters issued to NV Vogt Singapore Pvt Ltd, Al-Jomaih-Jakson Power Pvt Ltd, Vijay Printing Press Pvt Ltd, and Talettutayi Solar Projects Eight.

The National Solar Energy Federation of India (NSEFI) has said in a letter to R K Singh, the Minister of Power and Renewable Energy, that it is very wrong of the UPNEDA to conclude that the members have not taken any actions for the bid extension time. It also says that there is no basis for UPNEDA's statement that their bids have become time-barred and infructuous because the companies' did not take actions, whereas the UPNEDA inactions led to this.

As per the bidding guidelines, after the reverse bidding process, the bidding companies is responsible to issue the LOIs to the winning bids in a time-bound manner. According to REF, UPNEDA was under the obligation to issue the Letter of Intent (LOI) on or before May 15, 2020.

The NSEFI said, UPNEDA was unable to issue the LOI to their members within the time-bound despite the regular follow-ups and made a request to extend the time of Bid Period Validity which was accepted by the members. It was done by the interested members for commissioning the project, hoping to receive the LOI. There is an increasing trend of cancellation and renegotiation of the bids among the states, making it difficult for companies to execute their projects in India, NSEFI said.