Under PM-KUSUM initiative MSEDCL seeks bids for 225 MW solar energy

05 Apr 2023 CW Team

The Pradhan Mantri-Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program’s component-A has requested bids for the purchase of 225 MW of power from decentralised solar installations with capacities between 500 kW and 2 MW. The maximum rate set by MSEDCL is Rs 3.30/kWh. Within a year of the work order, the projects must be launched. The bids must be submitted by April 28, 2023.

The earnest money deposit requirement for bidders is Rs 100,000/MW. Within 30 days of the work order's date, successful bidders are required to send a performance bank guarantee in the amount of Rs 100,000/MW. As of the last day of the prior fiscal year, they ought to have a net value of Rs 10 million/MW. They should have a net yearly turnover of at least Rs 2.5 million per MW.

Bidders are required to have an internal resource generating capacity of at least Rs 1 million/MW in the form of profit before depreciation, interest, and taxes. To meet the working capital requirement, they must have an in-principle sanction letter from a bank committing a line of credit for Rs 1.25 million. With the chosen bidders, MSEDCL will enter into a power purchase agreement lasting 25 years from the project’s date of commercial operation.

To decrease technological risks and guarantee the project's timely completion, only operational, commercially established technology must be used. Farmers, cooperatives, panchayats, farmer- producer associations, and water user organisations are all acceptable forms of bidders for projects being established up on their lands. Bidders may set up the projects through a developer if they are unable to secure the necessary funding. A land lease contract will have to be signed by both parties.

The annual lease rate that must be paid to the landlord is Rs 75,000 per acre, with a 3% annual increase. The parties have agreed that the leasing agreement's term will be between 26 and 30 years.

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