Hubballi Electricity Supply Company (HESCOM) has invited bids to set up 108 MW grid-connected solar projects in five districts of Karnataka under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) – Component C.

The last date to submit bids is December 16, 2025. Bids will be opened on December 17.

Bidders must furnish a bid security of ₹100,000 (~$1,111.89)/MW per project and a performance security of ₹100,000 (~$1,111.89)/MW.

The scope of work includes the design, supply, survey, installation, testing, and commissioning of the projects to solarize selected agri-feeders at the substation level within HESCOM jurisdiction.

It also entails operations and maintenance for 25 years from the commercial operation date.

The projects also entail the setup of 22,000 irrigation pump (IP) sets, the associated 11 kV line to connect the plant to the concerned substation, and the remote monitoring system.

MNRE has approved 65,000 IPs to HESCOM under the PM-KUSUM program, and has already allotted 22,000 IPs.

The projects will be implemented under the renewable energy service company model.

The solar projects must be designed for interconnection to the 11 kV substation level.

Successful bidders must ensure land arrangements for the projects. They may acquire private land or utilize government land for the projects.

According to an order of the Karnataka government, the revenue department can allot land to the Energy Department under feeder-level solarization and fix the right of usage at ₹25,000 (~$277.97)/acre, with a 5% escalation on the base rate every 2 years.

Successful bidders must submit bids lower than the ceiling tariff of ₹2.13 (~$0.0236)/kWh.

The projects must be completed before March 31, 2026. The projects can be completed up to 4 months beyond the deadline, subject to penalties.

Successful bidders will be eligible to avail the central financial assistance of up to ₹10.5 million (~$116,748)/MW.

The successful bidders must use crystalline silicon or thin modules. They must also use modules listed in the Approved List of Models and the Approved List of Manufacturers (List I and List II).

The projects must ensure an annual capacity utilization factor (CUF) of at least 19%. HESCOM will be obligated to purchase excess power generated up to 10% over the CUF at a 75% rate of the power purchase agreement tariff.

If the solar projects generate energy in excess of 10% over the CUF, the power will be supplied to HESCOM at no cost.

Only commercially established and operational technologies must be used to minimize technology risk and ensure timely project commissioning.

Selected bidders must have commissioned a project of at least 1 MW and operated for at least a year.

They must have a minimum positive net worth of at least ₹10.5 million (~$116,748)/MW as of March 31, 2025.

In 2024, MEIL Solar Energy, a subsidiary of Megha Engineering & Infrastructures, signed power purchase agreements with another Karnataka DISCOM, Bangalore Electricity Supply Company, to supply 618.1 MW of power from 76 solar power projects of varying capacities under Component C of the KUSUM program.

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