Tender Floated for 50 MW of Solar Projects Under KUSUM Program in Jharkhand

The ceiling tariff for the tender is ₹3.09 (~$0.042)/kWh


The Jharkhand Bijli Vitran Nigam (JBVNL) has issued a request for proposal (RfP) to select solar power generators to install 50 MW of grid-connected solar power projects connected to 33/11 kV substations.

The power generated from these projects across various locations in Jharkhand would be sold to JBVNL under Component-A of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) program.

The last date for submitting bids is September 3, 2021, and the last date for submitting the technical bids is September 6, 2021. The bids would be opened on September 7, 2021. All bids must be accompanied by a bid security of ₹100,000 (~$1,346)/MW along with the bid processing fee of ₹5,000 (~$79)/MW (including 18% Goods and Services Tax) for the capacity applied.

Scope of work

The scope of work includes design, engineering, supply, construction, erection, testing, and commissioning of the project. The scope also includes the construction of the bay and related switchgear at the sub-station coupled with a comprehensive operation and maintenance (O&M) contract for 25 years.

The minimum size of each project is 500 kW/substation, and the maximum is 2 MW/substation. The ceiling tariff is ₹3.09 (~$0.042)/kWh or as determined by the Jharkhand State Electricity Regulatory Commission (JSERC).

The power purchase agreement’s (PPA) duration is 25 years, and the minimum annual capacity utilization factor (CUF) must be 15% during the PPA period.

The project would be set up on barren and uncultivable lands within a 5 km radius of the substations notified by JBVNL. Interested landowners can participate either by investing or through lease mode.

Bidder may decide to create a special purpose vehicle (SPV) at the bidding stage; however, the formation of an SPV is not required to participate in the bid. When the bidder is selected, it can choose to incorporate a project company.

If the bidder is a consortium (maximum two members), it is mandatory to incorporate the project company to sign the PPA. The project company must be formed within 20 days from the issuance of the letter of award (LoA). The bidder is responsible for getting all required clearances in the name of the project company and transferring already obtained clearances if any.

If a consortium is selected as the successful bidder and decides not to form a project company, the lead member would be responsible for all the correspondence and documentation.

Eligibility Criteria

Individual farmers, farmer groups, cooperative societies, panchayats, farmer producer organizations, water user associations, government agricultural institutes, or other agriculture-related institutions – collectively referred to as landowners – can collaborate with engineering procurement and construction (EPC) contractors, system integrators, and developers are eligible to install the 500 kW or 2 MW grid-connected ground-mounted solar photovoltaic projects.

Individual farmers, farmer groups, farmers setting up the project on leased land, farmers setting up the project as part of a consortium, cooperatives, panchayats, farmer producer organizations, water user associations, farmers setting up the project in their lands, government agricultural institutes and other agriculture-related institutions are exempt from meeting the financial eligibility requirement.

Landowners can also invest in the solar PV projects on a turnkey basis and the O&M of the project for 25 years. JBVNL will sign the PPA with the landowners for 25 years.

The networth of project developers should not be less than ₹10 million (~$134,605)/MW for the applied capacity. The developer must have sufficient liquidity to manage the project’s fund requirements, which will be assessed through the average annual turnover of for the last two financial years (FY) 2019-20 and FY 2020-21 of at least ₹20 million (~$269,233)/MW for the applied capacity.

If the developer, for example, applies for 1 MW each at three different substations, it must demonstrate a net worth of ₹30 million (~$403,849) and an annual turnover of ₹60 million (~$807,699). In the case of a consortium, the net worth can be fulfilled jointly by the consortium members.

The aggregate equity shareholding of the successful bidder in the issued and paid-up share capital and the voting rights of the project company can not be less than 51% up to one year.

Any consortium member or partner in a partnership firm or a limited liability partnership must maintain individual equity of at least 51% in the newly formed project company in the bidding consortium or the partnership deed, up to one year.

Recently, Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) invited bids for 225 MW of grid-connected solar projects of capacity 500 kW to 2 MW under Component A of the KUSUM program.

As per Mercom’s India Solar Tender Tracker, 1,370 MW of tenders have been floated under PM KUSUM Component-A across India.


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