Only Manufacturers of Solar Pumps and Modules Allowed to Bid Under KUSUM Program

The empanelment criteria have been expanded to ensure participation of more vendors

August 23, 2019


The Ministry of New and Renewable Energy (MNRE) has issued an amendment to the guidelines for implementing the KUSUM program for India’s farmers, which would help solarize agriculture.

Now, the central public sector units (CPSUs) must come out with regional or state-wise tenders under the KUSUM program. The role of CPSU will be limited to conducting the tender process and discovering the rates.

To ensure the quality and to assure post-installation services, only manufacturers of solar water pumps or solar modules will be allowed to participate in the bidding process.

The MNRE has also expanded the selection criteria to ensure that there are enough vendors to satisfy demand. According to the MNRE, bidders who have submitted financial bids in the range of lowest (L1) price+15% of the L1 price, will be invited to match the L1 price and be empaneled.

Simultaneously, the ministry has also issued a memorandum for state-wise capacity allocation under the KUSUM program for the country’s farmers.

The capacities have been allocated to various states in line with the demand received from states, the targets listed under the KUSUM program, and the guidelines. These will be applicable for the first year of the program.

Recently, the MNRE issued detailed guidelines for the implementation of the KUSUM program.

Mercom previously reported that in March 2019, the central government approved the launch of KUSUM program aimed at helping the farmers install solar pumps and grid-connected solar power projects, which in turn would provide financial and water security to farmers.

The program has been divided into three components and aims to add a solar capacity of 25,750 MW by 2022 with the central government support of ₹344.22 billion (~$4.99 billion).

Solar power is one of the most versatile forms of energy, with boundless potential and can be a game-changer for the agricultural sector, saving precious water resources, reducing dependency on the grid, and even becoming an additional revenue stream for farmers.

Towards the beginning of August 2019, Central Electronics Limited (CEL), a public-sector enterprise of the central government, invited an Expression of Interest (EoI) for empanelment of manufactures of solar water pumps in tenders under the KUSUM program.

Image Credit: Claro Energy