Punjab State Power Corporation (PSPCL) has invited bids to procure 500 MW of solar power from projects located anywhere in the country on a long-term basis.

The last date to submit the bids is February 16, 2026. Bids will be opened on February 18, 2026.

Bidders must submit an earnest money deposit of ₹1 million (~$11,083) and a bid processing fee of ₹300,000 (~$3,325).

Selected bidders must also submit a performance bank guarantee of ₹2.4 million (~$26,599)/MW after issuance of the letter of intent and before the signing of the power purchase agreement (PPA).

Bidders can offer projects at multiple locations, with each project having a minimum capacity of 50 MW. The cumulative offered capacity should not exceed 250 MW.

PSPCL has floated a tender to fulfill its renewable purchase obligation and meet future renewable power requirements.

PSPCL will enter into a PPA with the successful bidders for 25 years from the commencement of the supply date of the project.

Bidders are free to avail themselves of fiscal incentives such as accelerated depreciation, concessional customs and excise duties, tax holidays, benefits from trading in carbon credits, and fiscal assistance under the Punjab New and Renewable Sources of Energy.

Only commercially established and operational technologies can be used to minimize the technology risk and to achieve timely project completion.

Projects that are under construction, yet to be commissioned, or already commissioned but without any long-term PPA and currently selling power on a short-term or merchant basis will be considered, provided these projects have not already been approved under any other central or state programs.

Bidders must have a net worth of at least ₹10 million (~$110,830)/MW for the last financial year.

Also, they should have a minimum annual turnover of ₹5 million (~$55,415)/MW of the quoted capacity during the last financial year.

The internal resource generation capability, in the form of profit before depreciation, interest, and taxes, should be at least ₹1 million (~$11,083)/MW of the quoted capacity.

Bidders should have an in-principle sanction letter from the lending institutions committing a line of credit for a minimum of ₹1.25 million ($13,854)/MW of the quoted capacity, to meet the project’s working capital requirement.

Additionally, the responsibility of obtaining grid connectivity and long-term access from PSPCL will be entirely with the successful bidders.

All expenses, including wheeling charges and losses between the project and the delivery point, will be paid by the successful bidders.

In December last year, PSPCL issued a request for selection to procure 500 MW of solar power from projects located anywhere in the state.

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