Tender Floated for 1,250 MW of Solar Projects Under the KUSUM Program in Madhya Pradesh

The last date to submit the bids online is June 7, 2022


Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) has invited bids to set up 1,250 MW of grid-connected solar power projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (KUSUM) program at various locations in Madhya Pradesh.

The power from the projects will be procured by the Madhya Pradesh Power Management Company Limited (MPPMCL).

The scope of work includes the design, engineering, supply, construction, erection, testing, and commissioning, including the construction of bay and related switchgear at the sub-station along with the comprehensive operation & maintenance for 25 years.

The last date to submit the bids online is June 7, 2022. Bids will be opened on June 10.

Under Component C of the KUSUM program, the government aims to solarize 1.5 million grid-connected solar pumps of individual capacity up to 7.5 HP by 2022.

There is no cap on the total bid capacity.

Bidders will have to submit ₹100,000 (~$1,299)/MW as bid security. The successful bidder will have to furnish an amount equivalent to ₹500,000 (~$6,495)/MW for 12 months as a performance bank guarantee.

The duration of the power purchase agreement should be 25 years from the commercial operation date.

The substation to be considered for feeder solarization under Component-C of the KUSUM program should meet the following criteria:

  • It should have at least one dedicated agricultural feeder from the 33/11 kV substation
  • It should have at least one non-agricultural feeder from the 33/11 kV substation
  • The 33/11 kV substation should be technically capable of accommodating the proposed capacity of the solar project under the feeder solarization program

To participate in the bidding process, the bidder’s net worth should not be less than ₹10 million (~$129,900)/MW for the capacity applied in the last financial year.

The average annual turnover of the bidder for any two consecutive years of the last three financial years should be ₹20 million (~$259,800)/MW for the quoted capacity.

In any contract year, the procurer will not be obligated to purchase additional energy above the 21% capacity utilization factor (CUF) on an annual basis during the PPA period. However, the excess energy generated by developers above 21% CUF may be procured at 75% of the PPA tariff.

For any contract year except for the first year of operation, the renewable power generator will be required to achieve a minimum CUF of 15% on an annual basis during the period of PPA.

The central financial assistance will be ₹10.5 million (~$136,395)/MW, i.e., 30% of the estimated cost of installation of the project at ₹35 million (~$454,650)/MW.

The solar generator will be responsible for land and associated infrastructure to develop the project and connectivity with the 33/11 kV sub-station to confirm power evacuation by the scheduled commissioning date or the commercial operation date, whichever is earlier.

Recently, MPUVNL issued a request for proposal from renewable energy generators to set up 8 MW of grid-connected solar projects under component- C of the PM KUSUM program.

Earlier, the Ministry of New and Renewable Energy had amended the guidelines for implementing Component C of the PM-KUSUM program to allow system integrators to participate in the bidding process.

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