The Indian Renewable Energy Development Agency Limited (IREDA) has amended certain conditions in the request for selection (RfS) issued for a tender floated under the production-linked incentive (PLI) program.

In May this year, IREDA invited bids to set up manufacturing capacities for vertically integrated high-efficiency solar modules under the PLI program.

Manufacturers setting up any solar production facilities will be eligible for applying for the incentive under the program. The interested party must ensure that the manufacturing capacities achieve the minimum level of integration of cells and modules, meet the minimum manufacturing capacity requirements, and follow the minimum threshold performance parameters of module efficiency as per the program guidelines.

The last date to submit the bids was June 30, 2021, and the bids were supposed to be opened on July 1.

Following are the various amendments incorporated in the RfS.

General Eligibility Criteria

According to the original RfS, the bidder may form a special purpose vehicle (SPV) for setting up the manufacturing facility once IREDA issues the letter of award (LoA). As per the latest amendment, the bidder may form a new or existing SPV for setting up the manufacturing facility once IREDA issues the LoA.

As per the initial RfS, the bidder’s net worth for cell and module manufacturing capacity must be established mandatorily within 90 days from the issuance of the LoA. This is amended allowing the bidder 120 days from the issuance of the LoA.

Earlier it was mandated that the shareholding pattern must not be changed until the manufacturing facility is commissioned once the SPV is formed.

It is now amended allowing the applicant to maintain a minimum of 51% shareholding until the manufacturing facility is commissioned.

The company must take prior approval from the Ministry for New and Renewable Energy (MNRE) for any change in shareholding after the project is commissioned.

 

Construction Planning and Commissioning

As per the original RfS, the company must inform the IREDA 15 days in advance of the module efficiency or temperature coefficient changes, resulting in its position in the performance matrix and PLI (₹/Watt). If such change happens in a year, then PLI will be calculated on sales of modules based on earlier PLI rate and sales.

As per the latest amendment, if the change in module efficiency or module’s temperature coefficient happens in the middle of the year, then PLI will be calculated on sales of modules based on earlier PLI rate and sales.

Force Majeure

The latest amendment has added a force majeure clause. If the company is unable to fulfill its obligations in the event of force majeure, the company’s request would be referred to the MNRE. The MNRE would assess the request and decide whether to offer additional time to meet its obligations.

If the force majeure event occurs post-commissioning, affecting its operations, the company’s request would be forwarded to the MNRE, which will decide on the PLI disbursement.

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Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.