Maharashtra Seeks Bids to Study Fuel Price for Biomass, Bagasse-based Power Projects

The deadline for the submission of bids is May 14, 2020


The Maharashtra Electricity Regulatory Commission (MERC) has issued a request for proposal (RfP) to study and evaluate the price of fuel for biomass and bagasse-based power projects in Maharashtra.

The last date for the submission of bids is May 14, 2020, while the date of opening of bids has been scheduled for May 15, 2020.

Interested bidders (can be an agency, firm, or institution) must pay a sum of ₹100,000 (~$ 1,315) as the earnest money deposit (EMD). The scope of work includes visits to projects located at various districts of the state to assess and study the projects.

The successful bidder will also have to evaluate the potential availability of biomass and bagasse fuel, including its land price. The bidder is expected to prepare a detailed estimation of biomass/bagasse that is available for power production on a long-term sustainable basis, price escalation factor, and gross calorific value of the fuel.

According to the tender document, while working out the price of the fuel, due weightage should be given to the residual value of such fuel. The options on its possible alternate uses should also be mentioned.

The other works include the assessment of data from the Ministry of Agriculture or the agriculture department of state or center. The successful bidder needs to make a note of the trend of fuel availability and assess the prices for the existing biomass and bagasse power projects. The assessment needs to be done by verifying relevant records of the last three years.

The successful bidder will have to prepare an inception report, including a detailed fieldwork plan with timelines, monthly progress reports, and presentation of the progress of data collection and analysis. These reports need to be submitted to the Commission.

The overall work should be completed within six months from the date of the work order with four months for the completion of all data collection and analysis and two months for the finalization of the report and recommendations.

As far as the eligibility criteria are concerned, organizations and institutions that are interested in bidding for the project should be empaneled with the government of Maharashtra or should be a government or not-for-profit organization having experience in undertaking field surveys and fuel assessment studies. The average annual turnover of the firm should be ₹50 million (~$657,393).

The bidder must be well acquainted with the regulatory environment in the power sector and the functioning of the utility.

The successful bidder should adhere to the work plan strictly. If there is a delay of more than two weeks, then the bidder will have to pay a penalty of ₹10,000 (~$131.48) per week. However, the MERC reserves the right to waive off the penalty considering prevailing circumstances and reasons for the delay.

In January 2020, Mercom reported that the Ministry of New and Renewable Energy (MNRE) released a list of technically qualified organizations for independent third-party evaluation study for the New National Biogas and Organic Manure Program and the Biogas based Power Generation (Off-grid) and Thermal Energy Applications Program.

Earlier, it was reported that the MNRE had issued an expression of interest for an independent third-party evaluation study of its biogas-based power generation (off-grid) and thermal energy applications program.