Ajmer Vidyut Vitran Nigam (AVVNL) has issued a tender for designing, surveying, supplying, installing, testing, commissioning, operating, and maintaining grid-connected solar power projects with capacities ranging from 0.5 MW to 2 MW for a total capacity of 68 MW under Component A of the PM-KUSUM program.

The projects will be executed under the Renewable Energy Service Company mode.

The project’s scope includes 25-year operation and maintenance, setting up 11 kV power lines to connect the projects to 33/11 kV substations, and installing a remote monitoring system.

Bids must be submitted by January 16, 2025. Bids will be opened on January 17, 2025.

Bidders must provide an earnest money deposit of ₹100,000 (~$1,177)/MW. The bidders must also submit a Performance Bank Guarantee of ₹100,000 (~$1,177)/MW or part thereof for the capacity they bid for.

The central or state government will offer no financial subsidies or assistance for installing solar power projects under Component A of the PM-KUSUM program.

Bidders must cover all project-related expenses, including network lines and the project operations lasting over 25 years.

Decentralized solar projects with capacities between 500 kW and 2 MW, must be established on farmers’ unused, barren, cultivated, or fallow land, preferably within 5 km of the 33/11 kV substations.

AVVNL will purchase the electricity generated from these projects at a levelized tariff of ₹3.04 (~$0.035)/ kWh for 25 years, with no price escalation allowed during this period.

Solar modules used must conform to the Approved List of Models and Manufacturers.

If the land is leased to a solar power project developer, the applicable annual lease rent for 26 years (including the 25-year PPA duration) will follow the rates below:

• • Land value up to ₹800,000 (~$9,419) per hectare: ₹80,000 (~$941.9) annual rent per hectare.
  • Land value between ₹800,000 (~$9,419) and ₹1.2 million (~$14,129) per hectare: ₹100,000 (~$1,177) annual rent per hectare.
  • Land value between ₹1.2 million (~$14,129) and ₹2 million (~$23,549) per hectare: ₹140,000 (~$1,648) annual rent per hectare.
  • Land value of over ₹2 million (~$23,549) per hectare: ₹160,000 (~$1,883) annual rent per hectare.

• Land value up to ₹800,000 (~$9,419) per hectare: ₹80,000 (~$941.9) annual rent per hectare.
• Land value between ₹800,000 (~$9,419) and ₹1.2 million (~$14,129) per hectare: ₹100,000 (~$1,177) annual rent per hectare.
• Land value between ₹1.2 million (~$14,129) and ₹2 million (~$23,549) per hectare: ₹140,000 (~$1,648) annual rent per hectare.
• Land value of over ₹2 million (~$23,549) per hectare: ₹160,000 (~$1,883) annual rent per hectare.

The lease rent values will increase by 5% every two years.

Leasing agreements will be bipartite arrangements between the farmer and the developer.

AVVNL will not be responsible for any issues or failures in securing land leases.

The solar panels and associated equipment must ensure a minimum Capacity Utilization Factor of 17% at its own expense.

In March, AVVNL issued four tenders to set up 768.4 MW solar power projects under Component C of the PM KUSUM program.

The company floated a tender to develop 72.33 MW grid-connected solar power projects under component C of the PM KUSUM program in June 2023.