Madhya Pradesh Invites Bids for 670 MW Solar Projects Under KUSUM

The last date for the submission of bids is October 10, 2023


The Madhya Pradesh Urja Vikas Nigam (MPUVNL) has invited bids to select renewable power generators (RPGs) to set up 670 MW grid-connected solar power projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) program.

The power from the projects will be supplied to the Madhya Pradesh Power Management Company (MPPMCL).

The last date for the submission of bids is October 10, 2023. Bids will open on November 3.

The scope of work includes designing, engineering, supplying, constructing, erecting, testing, commissioning, and construction of bays and related switchgear at the substation.

It also involves comprehensive operation and maintenance services for the power purchase agreement (PPA) period of 25 years.

Bidders must submit ₹100,000 (~$1,201)/MW of the quoted capacity as bid security. The successful bidder will have to furnish an amount equivalent to ₹500,000 (~$6,007)/MW of the allotted capacity as a performance bank guarantee within 30 days from the issue of the letter of award.

Bidders have the flexibility to submit bids for any number of substations; there is no cap on the total bid capacity. However, a bidder is allowed to submit only one bid for an individual substation or project. All the target feeders originating from a single substation will be treated as a single project.

The total bid capacity in MW for a specific substation will be considered as one project.

The substation selection criteria for feeder solarization, as determined by the respective distribution companies, are as follows:

  • The substation must have at least one exclusive agricultural feeder originating from a 33/11 kV substation.
  • The substation must also have at least one non-agricultural feeder originating from a 33/11 kV substation.
  • The 33/11 kV substation must have the technical capability to accommodate the proposed solar project capacity as part of the feeder solarization component C of the PM KUSUM program.

In any contract year, except for the first year, the renewable power generator must maintain a minimum annual Capacity Utilization Factor of 15% throughout the PPA period.

The Central Financial Assistance will be ₹10.5 million (~$126,161)/MW. This amount represents 30% of the estimated installation cost for the solar project, which is set at ₹35 million (~$420,525)/MW.

Financial eligibility criteria for bidding:

Self-development Mode: No financial requirements for individual farmers, cooperatives, panchayats, FPOs, WUAs, or agricultural institutions.

Developer Mode: For bidding, financial eligibility criteria include meeting net worth or turnover requirements based on audited financial statements. Consortiums and joint ventures can fulfill these criteria either individually or jointly. Additionally, there is a mandatory equity lock-in period for the first operational year from the commercial operation date. The specific net-worth requirement is set at ₹10 million (~$120,151)/MW based on financial statements for the fiscal year 2023.

Recently, MPUVNL invited bids to set up 300 MW of grid-connected solar power projects under Component C of the KUSUM program.

In January, MPUVNL invited bids to develop 1,110 MW of grid-connected solar projects under component C.

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