The Maharashtra State Electricity Distribution Company Ltd (MSEDCL) floated a tender for 500 MW solar projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) program in Maharashtra. As a part of the KUSUM program, the government aims to solarise one million grid-connected agriculture pumps up to 7.5 horsepower (HP) by 2022. The deadline to submit the e-bids is 24 January 2022, and the pre-bid meeting will be held on 6 January 2022. The bidders will have to deposit Rs 100,000 per MW as an earnest money deposit. The winning bidder will have to deposit Rs 500,000 per MW as a performance bank guarantee two days before signing the Power Purchase Agreement (PPA). MSEDCL will enter into PPAs with the winning bidders to procure solar power for 25 years from the commercial operation date of the solar projects. The projects under construction, the projects that are not commissioned, and the projects that are commissioned but do not have long-term PPA or selling power on a short-term or merchant plant basis cannot participate in the bidding process. The projects must be commissioned in nine months from signing the PPA. The solar developers must use indigenously produced solar panels, solar cells and modules, listed in the Approved List of Models and Manufacturers (ALMM). The lease rent is set at Rs 30,000 per acre each year with a 3% increment annually. The lease agreement will be applicable for 26 and 30 years. The eligible bidders should have a net worth of a minimum of Rs 10 million per MW of the quoted capacity in the previous financial year. The bidder's annual turnover should be at least Rs 2.5 million per MW of the quoted capacity in the previous financial year. For participating in the bidding, the eligible bidder should have an internal resource generation capacity in the form of profit before depreciation, interest and taxes (PBDIT) for at least Rs 1 million per MW of the quoted capacity in the last financial year. The bidder should have an in-principle sanction letter of a line of credit of at least Rs 1.25 million per MW of the quoted capacity. Image Source