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Actionable news in SUNE: SUNEDISON Inc,

SunEdison setback may delay Modi's "ultra mega" solar drive in India

* Debt-heavy SunEdison looking to sell India assets

* SunEdison had won 500 MW solar project with record-low bid

* Analysts say aggressive solar bids not healthy for sector

* SunEdison's troubles could force changes to auction rules

MUMBAI, April 7 (Reuters) - The likely collapse of SunEdison Inc's solar project in India, the first of 32 planned "ultra mega" complexes, could delay Prime Minister Narendra Modi's goal to increase renewable energy fivefold by several years and probably cost consumers more.

As the U.S. solar giant fights to stave off bankruptcy, the 500 megawatt project in Andhra Pradesh state it won last November lies idle with ground yet to be broken. The other projects are still to be bid on.

It's doubtful any rival will pick up the project at the aggressive power pricing promised by SunEdison, which beat out 29 other bidders with a record-low tariff of 4.63 rupees (7 U.S. cents) per kilowatt-hour.

That will force Indian officials to tighten auction rules to ensure that only serious, bankable bidders show up, industry sources said. India plans to auction more of the "ultra mega" projects - those which generate at least 500 MW - in the current fiscal year through to March 2017.

"There is always a tradeoff," Upendra Tripathy, secretary at the Ministry of New and Renewable Energy, told Reuters of the renewable energy auctions.

"There can be a relaxed condition so that more people can participate and there is another where you can make sure fly-by-night operators can't come in. It's an ongoing process and we are open to suggestions."

Tightening auction rules could slow the pace at which projects are awarded and built, pushing...