Bids Invited for 225 MW of Solar Projects Under KUSUM Program in Madhya Pradesh

Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) has invited bids to select developers to set up 225 MW of grid-connected solar projects of capacity 500 kW to 2 MW under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) program.

The scope of work includes design, engineering, supply, construction, erection, testing, and commissioning, including the construction of bay and related switchgear at the substation, along with comprehensive operation & maintenance of the project for 25 years.

The power generated from such solar projects will be sold to the Madhya Pradesh Power Management Company Limited at the tariff discovered in the e-reverse auction process and conditions specified in the power purchase agreement (PPA).

Under Component A of the program, the government has put a target to set up 10 GW of decentralized ground-mounted grid-connected solar projects of individual project size of up to 2 MW.


The last date to submit the bids online is August 31, 2021, and the opening of bids will take place on September 2, 2021.

The ceiling tariff has been set as ₹3.07 (~$0.041)/kWh, and the duration of the PPA will be 25 years from the commercial operation date.

The selected power producer should commission the project within nine months from the effective date of the PPA.

Interested bidders are not required to pay any bid security. The successful bidder will have to furnish a performance bank guarantee of ₹500,000 (~$6,719)/MW for 12 months. The performance bank guarantee will be returned to the power producer immediately after the successful commissioning of the project. As per the tender document, for any contract year for the first year of operation, the renewable power generator will be required to achieve a minimum capacity utilization factor of 15% on an annual basis during the period of the PPA.

Also, the procurer, in any contract year, would not purchase any additional energy above the 23% capacity utilization factor on an annual basis during the PPA period from the generator. However, the excess power generated by the generator above 23% may be procured at 75% of the PPA tariff as per the provisions of the PPA.

To participate in the bidding process, the bidders could participate as an individual or group of farmers, cooperative, panchayats, farmer producer organizations, or water user organizations setting up the project on their lands. If the bidders concerned fail to arrange the equity needed to set up the projects, they may opt to erect the project through a developer by signing a land lease agreement. In such a case, the landowner will get lease rent on mutually agreed terms and conditions between the parties.

In the case of a developer setting up the project on the leased land, his net worth should not be less than ₹10 million (~$134,383)/MW of the quoted capacity for the last financial year. The bidder’s average annual turnover for the last two financial years should be ₹20 million (~$268,767)/MW of the quoted capacity.

Earlier in February, MPUVNL had increased the capacity of bids for solar projects under Component A of the KUSUM program from 100 MW to 300 MW.  In May it invited bids to set up 270 MW of grid-connected solar projects of capacity 500 kW to 2 MW under Component A of the KUSUM program.

According to Mercom’s India Solar Tender Tracker, tenders for 576 MW of solar projects have been floated in the country under Component-A of the KUSUM program by various organizations.