Sterling and Wilson Bags BoS Package Tender for 1.2 GW Solar Projects
The tender is worth ₹21 billion and includes a 3-year O&M contract
March 21, 2023
Sterling and Wilson Renewable Energy, the solar engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, won NTPC’s tender for the balance of system (BOS) package to develop 1.2 GW (4*300 MW) of solar power projects at Khavda renewable park in Gujarat.
The aggregate capacity of the project is approximately 1.5 GW. The total bid value, including the operation and maintenance for 3 years, is ₹21 billion (~$254 million).
NTPC Renewable Energy, the wholly-owned subsidiary of NTPC, invited bids for the project in November last year. The scope of work included the design, engineering, manufacturing, installation, and commissioning of solar projects.
NTPC said that the projects could be in diverse sectors, including power, steel, oil and gas, petrochemical, fertilizer, cement, coal mining, or any other process industry. The Ministry of New and Renewable Energy gave the go-ahead to NTPC Renewable Energy in 2021 to set up the renewable park at the Khavda solar park.
Last June, NTPC Renewable Energy also invited bids for the BoS package for 1,255 MW (3*315 MW+310 MW) of solar projects at the Khavda park. The total contract value, including three years of operation and maintenance, is about ₹22 billion (~$275.41 million).
Sterling and Wilson Renewable Energy emerged as the lowest bidder for the 1,255 MW project.
Per the tender terms, Sterling and Wilson deposited ₹50 million (~$612,045) as bid security for one block of 300 MW capacity, ₹100 million (~$1.22 million) for two blocks totaling 600 MW, and ₹200 million (~$2.45 million) for three or more blocks totaling 900 MW and 1,200 MW, respectively.
According to Mercom’s India Solar Market Leaderboard 2022, Sterling and Wilson, Siemens Gamesa, and Tata Power Solar were the top utility-scale solar engineering, procurement, and construction service-providing companies in 2021. Sterling and Wilson led the way with a market share of 12%.
Last year, Shapoorji Pallonji proposed to sell 2,370,787 equity shares having a face value of ₹1 (~$0.013) each, amounting to a 1.25% equity it holds in its solar engineering and construction arm Sterling and Wilson Renewable Energy.