Assam Invites Bids for 30 MW of Solar Projects Under CPSU Program

The tender comes with a domestic content requirement clause


The Assam Power Distribution Company Limited (APDCL) has floated a tender to develop 30 MW of grid-connected solar PV power projects.

The capacity has been tendered under the Central public sector Undertaking (CPSU) Phase II program. The projects of 10 MW each are to be set up in the lower Assam zone, central Assam zone, and in the region of Cachar, Karimganj, and Hailakandi.

The ceiling price has been set at ₹3.13 (~$0.043)/kWh and the last date for the submission of bids is January 27, 2020. A pre-bidding meeting will take place on January 17, 2020.

The scope of work includes the design, construction, and supply of solar power generating systems with domestic content requirement (DCR). The project developer will also be responsible for the operation and maintenance (O&M) for 25 years. It also includes the procurement of land and construction of evacuation facilities.

The interested bidders will have to submit an amount of ₹655,000 (~$9,095)/MW as the earnest money deposit (EMD) for each of the three regions.

The successful bidders will also have to submit an amount of ₹1,637,000 (~$22,732)/MW as the contract performance guarantee amount.

The minimum capacity allocated to a bidder is 1 MW, and the maximum allocation to a single bidder will be 30 MW.

The scheduled date of commissioning (SCD) is 18 months from the date of issuance of the letter of award (LoA). The power producer will have to quote the capacity utilization factor (CUF) of their project at the time of submission of the bid. The quoted CUF should not be less than 16.21% over a year.

A bidder can participate either as a single bidder or a consortium. Partnership firms or limited liability partnership (LLP) or limited liability company (LLC) can also participate in this bidding process.

If the successful bidder is a consortium, then all the members of the consortium together should subscribe and hold at least 51% of the paid-up share capital. The lead member of the consortium should subscribe and hold at least 26% of the paid-up share capital with voting rights of the SPV from the date of its incorporation until the expiry of the first contract year.

As far as the financial eligibility is concerned, the net worth of the bidder as on the last day of the preceding financial year should not be less than ₹6.55 million (~$90,959)/MW.

The minimum annual turnover of the bidder should be ₹5 million (~$69,434)/MW during the previous financial and the internal resource generation capability, in the form of profit before depreciation interest and taxes (PBDIT) should be for a minimum amount of ₹1 million (~$13,887)/MW, as on the last date of the previous financial year.

The state government of Assam has a target to install 590 MW of solar energy projects through solar parks, rooftop, and off-grid projects by 2020. However, Assam is one of the least developed states in the country when it comes to renewable energy sources. According to Mercom’s India Solar Project Tracker, the state currently has a negligible solar capacity of 100 MW under development.

Previously, the Assam Power Generation Corporation Limited (APGCL) had issued a tender for a 20 MW solar power project at the state’s Namrup Thermal Power Station.

Last year, the state issued a draft policy announcing its renewable purchase obligation (RPO) from 2019 to 2022. The draft policy had also amended certain sections of the principle regulation. The renewable purchase obligation for FY 2020, FY 2021, and FY 2022 will be 17.5%, 19%, and 21%, respectively.