GAIL floats tender to acquire operational projects in solar parks

GAIL floats tender to acquire operational projects in solar parks

GAIL (India), a natural gas company, invited expression of interest (EoI) to set up solar power projects established in solar parks

GAIL is searching for opportunities in the renewable energy sector with a goal of a 1,000 MW capacity. Against this backdrop, the company has invited EoI from independent power producers, promoters, and developers willing to give a 100% or 50% equity stake in their up and running solar projects established in solar parks.

August 3, 2021, is the last date to submit the bid, and the EoI would be valid for three months from the submission date. The minimum capacity of the solar project should be 50 MW, and it must be established at a single site.

The project must be owned and managed by the Special purpose vehicle (SPV) registered in India. Companies interested should offer each project owned by the SPC in the solar parks. The SPV must not have any assets outside the solar parks.

The natural gas company has informed that the power purchase agreement (PPA) for the projects should be with NTPC or the NTPC Vidyut Vyapar Nigam Limited (NVVN), the Solar Energy Corporation of India (SECI), or another central government agency. According to the tender document, each project should be in constant operation for the last 12 months with a minimum plant availability of 95% on the bid submission date.

Moreover, interested parties offering the operation and maintenance (O&M) services for the projects should continue to give the services for at least a couple of years, based on the current terms and conditions from the signing agreement acquisition date.

If GAIL gets 50% equity in the offered SPVs, the remaining shareholders or the interested parties must keep a 50% equity stake in those SPVs for at least a year from the date of GAIL becoming an equity partner in that SPV. Afterwards, the interested parties and the remaining shareholders can sell their equity stake to a third party.

The company has also informed that the parties which would be shortlisted would be asked to offer a comprehensive financial model and additional details, including returns by discounted cash flow for their offered SPVs in seven days from the shortlisting date by GAIL. Individual financial models should be submitted, if a party offers more than one SPV.

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Also read: NTPC Invites bids for 500 MW grid-connected solar projects

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