Bids Invited for 440 MW of Solar Projects Under KUSUM Program in Madhya Pradesh

Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) has invited bids to set up 440 MW of grid-connected solar power projects of 500 kW to 2 MW capacity under Component A of the Pradhan Mantri Kisan Urja 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 sub-station.

The successful bidder will also have to take care of the operation and maintenance activities of the project for 25 years.

MP Power Management Company (MPPMCL) will procure the power generated from the projects.


The last date to submit the bids online is April 4, 2022. Bids will be opened on April 7.

Under Component A of the PM-KUSUM program, the government aims to set up 10,000 MW of grid-connected solar power projects of individual project size of up to 2 MW.

The Madhya Pradesh Electricity Regulatory Commission has set a ceiling tariff of ₹3.07 (~$0.040)/kWh for the tender. The duration of the power purchase agreement (PPA) is 25 years.

Interested bidders will have to submit an amount of ₹100,000 (~$1,318)/MW as bid security, and it will be valid for 180 days from the bid submission deadline.

The successful bidder will be required to furnish ₹500,000 (~$6,591)/MW as a performance bank guarantee within 30 days from the issuance of the letter of award.

For any contract year except for the first year of operation, the renewable power generator will be required to achieve a minimum capacity utilization factor (CUF) of 15% on an annual basis during the period of PPA.

Bidders could participate as an individual or group of farmers, cooperatives, panchayats, farmer producer organizations, or water user organizations setting up the project on their lands. If bidders cannot arrange the capital required to set up the projects, they may set up the project through a developer signing a land lease agreement.

If a developer sets up the project on leased land, the net worth of the bidder should not be less than ₹10 million (~$133,153)/MW of the quoted capacity.

The bidder’s minimum annual turnover should be ₹2 million (~$26,366)/MW of the quoted capacity during the last financial year.

Last August, MPUVNL 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 PM KUSUM program.

Earlier, MPUVNL had invited bids to set up 270 MW of grid-connected solar power projects of capacity 500 kW to 2 MW under Component A of the PM KUSUM program.

According to Mercom’s India Solar Tender Tracker, various organizations have floated tenders for 495 MW of solar projects in Madhya Pradesh under Component-A of the KUSUM program.