MSEDCL Invites Bids for 250 MW of Solar Power Under KUSUM Program

The last day to submit the bids is March 15, 2023


Maharashtra State Electricity Distribution Company (MSEDCL) has invited bids to procure 250 MW from decentralized solar projects under component-A of the Pradhan Mantri-Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program to be developed in the state.

The projects should be commissioned within 12 months of issuance of work.

MSEDCL has set a ceiling tariff of ₹3.30 (~$0.040)/kWh.

The last day to submit the bids is March 15, 2023.

Under Component A of the PM-KUSUM program, the Central government aims to set up 10,000 MW of grid-connected solar power projects of individual project sizes of up to 2 MW. The minimum individual project capacity is set at 500 kW.

Interested bidders must furnish an earnest money deposit of ₹100,000 (~$1,208)/MW. Successful bidders must remit a performance bank guarantee of ₹100,000 (~$1,208)/MW within 30 days from the date of issue of the work order.

They should have a net worth of ₹10 million (~$120,811)/MW as of the last day of the preceding financial year. Their net minimum annual turnover should be ₹2.5 million (~$30,202)/MW.

Bidders must have an internal resource generation capability in the form of profit before depreciation, interest, and taxes (PBDIT) for a minimum amount of ₹1 million (~$12,081)/MW.

They must possess an in-principle sanction letter from a bank committing a line of credit for ₹1.3 million (~$15,100) to meet the working capital requirement of the project.

MSEDCL will enter into a power purchase agreement with the successful bidders for 25 years from the commercial operation date of the projects.

The terms of the tender mandate that only commercially established and operational technologies can be used to minimize the technology risk and achieve the projects’ timely commissioning.

Further, bidders can participate as individuals or groups of farmers, cooperatives, panchayats, farmer-producer organizations, or water user organizations setting up the project on their lands.

If bidders cannot arrange the capital, they may set up the projects through a developer. Both parties will have to sign a land lease agreement.

The lease rent to be paid to the landowner will be ₹75,000 (~$906) per hectare per year with a yearly increment of 3%. The tenure for the lease agreement will be between 26 and 30 years, as agreed by the parties.

The responsibility of getting grid connectivity with MSEDCL will vest with the successful bidder.

Also, the successful bidder will be responsible for power transmission up to the interconnection point and energy accounting infrastructure.

The project should be designed to deliver energy at an 11/22 kV level of the substation of MSEDCL.

In no case, the declared capacity utilization factor must be less than 15% over a year.

MSEDCL has stated that the mono-crystalline or poly-crystalline modules to be used for the project must be from the Approved List of Models and Manufacturers (ALMM) issued by the Ministry of New and Renewable Energy.

MSEDCL had invited bids to procure 300 MW of solar power from decentralized solar projects under Component A of the PM-KUSUM program.

Subscribe to Mercom’s India Solar Tender Tracker to stay on top of tender activity in real time.