Maharashtra: MSEDCL invite bids for 431 MW solar electricity projects
POWER & RENEWABLE ENERGY

Maharashtra: MSEDCL invite bids for 431 MW solar electricity projects

Under Component-A of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) initiative, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) has invited bids for 431 MW of solar electricity from decentralised solar projects with capacities ranging from 500 kW to 2 MW.

The deadline for bid submissions is June 3, 2022. The tender has a ceiling tariff of 23.10/kWh established by MSEDCL.

The government plans to build 10,000 MW of grid-connected solar power plants with individual project sizes of up to 2 MW under Component A of the PM-KUSUM programme.

As an earnest money deposit, bidders must contribute $100,000 per MW.

Within 30 days of receiving the letter of award, the winning bidder must provide a performance bank guarantee in the amount of 500,000 per MW.

The chosen bidders will engage in power purchase agreements (PPAs) with MSEDCL for 25 years from the start of commercial operation.

To prevent the high cost of sub-transmission lines and reduce transmission losses, solar power projects will be placed within a five-kilometre radius of substations.

To reduce technological risk and ensure project commissioning on schedule, only commercially established and operational technologies can be chosen.

Construction projects that have not yet been commissioned, and projects that have been commissioned but have no long-term PPA with any agency and are selling electricity on a short-term or merchant plant basis would be eligible.

Bidders can participate as an individual or as a group of farmers, cooperatives, panchayats, farmer producer associations, or water user organisations, and the project can be built upon their land.

If bidders can't come up with the money, they can put up the projects by signing a land leasing arrangement with a developer.

The annual lease rate to be paid to the landowner will be $730,000 per acre, with a 3% annual increase. The leasing deal would last between 26 and 30 years, as both sides have agreed.

Individual farmers, farmer groups, cooperatives, panchayats, farmer producer organisations, water user associations, and farmers establishing the project on their lands are excluded from the financial qualifying criteria.

If the project is to be built on leased property, the bidder's net worth must be at least $10 million. The bidder's yearly turnover should be at least $2.5 million.

As of the end day of the preceding financial year (FY), the developer must have an internal resource generating capability in the form of profit before depreciation, interest, and taxes for a minimum of 1 million of the quoted capacity.

To satisfy the working capital need, the developer should obtain an in-principle commitment from a financing institution pledging a Line of Credit for a minimum of 21.25 million of the stated capacity.

The project should be built to supply energy at the MSEDCL substation's 11/22 kV level. The selected bidder would be responsible for establishing grid connectivity with MSEDCL.

According to MSEDCL, the claimed capacity usage factor should not be less than 15% throughout the year.

Image Source

Also read: SJVN invites bid from consultants to draft DPR for solar projects

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

Under Component-A of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) initiative, the Maharashtra State Electricity Distribution Company Limited (MSEDCL) has invited bids for 431 MW of solar electricity from decentralised solar projects with capacities ranging from 500 kW to 2 MW. The deadline for bid submissions is June 3, 2022. The tender has a ceiling tariff of 23.10/kWh established by MSEDCL. The government plans to build 10,000 MW of grid-connected solar power plants with individual project sizes of up to 2 MW under Component A of the PM-KUSUM programme. As an earnest money deposit, bidders must contribute $100,000 per MW. Within 30 days of receiving the letter of award, the winning bidder must provide a performance bank guarantee in the amount of 500,000 per MW. The chosen bidders will engage in power purchase agreements (PPAs) with MSEDCL for 25 years from the start of commercial operation. To prevent the high cost of sub-transmission lines and reduce transmission losses, solar power projects will be placed within a five-kilometre radius of substations. To reduce technological risk and ensure project commissioning on schedule, only commercially established and operational technologies can be chosen. Construction projects that have not yet been commissioned, and projects that have been commissioned but have no long-term PPA with any agency and are selling electricity on a short-term or merchant plant basis would be eligible. Bidders can participate as an individual or as a group of farmers, cooperatives, panchayats, farmer producer associations, or water user organisations, and the project can be built upon their land. If bidders can't come up with the money, they can put up the projects by signing a land leasing arrangement with a developer. The annual lease rate to be paid to the landowner will be $730,000 per acre, with a 3% annual increase. The leasing deal would last between 26 and 30 years, as both sides have agreed. Individual farmers, farmer groups, cooperatives, panchayats, farmer producer organisations, water user associations, and farmers establishing the project on their lands are excluded from the financial qualifying criteria. If the project is to be built on leased property, the bidder's net worth must be at least $10 million. The bidder's yearly turnover should be at least $2.5 million. As of the end day of the preceding financial year (FY), the developer must have an internal resource generating capability in the form of profit before depreciation, interest, and taxes for a minimum of 1 million of the quoted capacity. To satisfy the working capital need, the developer should obtain an in-principle commitment from a financing institution pledging a Line of Credit for a minimum of 21.25 million of the stated capacity. The project should be built to supply energy at the MSEDCL substation's 11/22 kV level. The selected bidder would be responsible for establishing grid connectivity with MSEDCL. According to MSEDCL, the claimed capacity usage factor should not be less than 15% throughout the year. Image Source Also read: SJVN invites bid from consultants to draft DPR for solar projects

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?