Southern Railway has issued a tender for setting up three solar projects with a total capacity of 29 MW in Tamil Nadu.

The project will be implemented at Bulb Line in the MAS Division with an 8 MW capacity, at Nallampalayam in the SA Division with a 6 MW capacity, and at Golden Rock in the TPJ Division with a 15 MW capacity.

The project’s estimated cost is ₹3.78 billion (~$40.04 million). The ceiling tariff has been set at ₹4.54 (~$0.048)/kWh.

Bids must be submitted by June 23, 2026.

Bidders must furnish an earnest money deposit of ₹30.97 million (~$328,023), equivalent to ₹1.07 million (~$11,333)/MW, and a tender fee of ₹34,810 (~$369).

The successful bidder must submit a performance bank guarantee of ₹1.60 million (~$16,947)/MW, totaling ₹46.46 million (~$492,087), within 30 days of the power purchase agreement signing.

The scope of work includes the engineering, design, procurement, erection, civil and structural works, installation, testing, commissioning, and power evacuation. The successful bidder must also provide operation and maintenance services for 25 years.

Southern Railway will provide land or right-of-way. The solar power developer will undertake the survey, financing, construction, and long-term operation of the project.

The project requires interconnection at 25 kV, with ABT-compliant metering at the solar plant export feeders and receiving substations.

The project must be completed within 240 days from the effective date, extendable to 255 days from the date of the letter of award.

Bidders must be original equipment manufacturers of solar modules with a minimum three-year track record and at least 5 MWp of deployed capacity.

They must also have completed a single solar project of at least 10 MW for a government entity, a public sector utility, or a publicly listed company, with an average annual turnover of ₹5 billion (~$52.96 million) over the last three financial years.

Bidders must have a minimum average annual turnover of ₹15 million (~$158,874) over the last three years, positive net worth during the same period, and valid GST registration.

The parent company’s credentials may be considered if it holds at least 26% of the bidding entity’s equity.

Joint ventures of up to six members are permitted. The lead member must hold at least 26% of the equity, and the consortium must maintain at least 51% of the equity until two years after the commercial operation date.

The tender specifies a minimum capacity utilization factor of 17% in the technical criteria. The power purchase agreement guarantees require at least 15% capacity utilization factor for general-category states.

Liquidated damages will apply for delays and generation shortfalls. These include ₹2.65 (~$0.028)/kWh during performance testing and ₹2.65 (~$0.028)/kWh during the operation and maintenance period.

Change-in-law provisions allow compensation if cost impacts exceed ₹10 million (~$105,916) or 0.5% of the tariff each year.

Recently, Southern Railway invited bids to set up solar projects with a cumulative capacity of 40 MW at Chennai, Salem, and Tiruchirappalli divisions in Tamil Nadu.

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