PFC Consulting, a wholly-owned subsidiary of Power Finance Corporation (PFC), has invited bids to develop an interstate transmission system (ISTS) to evacuate 20 GW of power from the renewable energy zone in Rajasthan under Phase-III, Part H.

The transmission projects will be developed on a build, own, operate, and transfer basis.

The last date to submit the bids is May 5, 2022. Bids will be opened on the same day.

The projects must be completed within 18 months from the effective date.

The selected bidder will have to furnish an amount of ₹740 million (~$9.61 million) as a contract performance guarantee within ten days from the date of issue of the letter of intent.

The objective of the bidding process is to select a bidder who will acquire 100% of the equity shares of the special purpose vehicle (SPV)  (which is under incorporation) along with all its related assets and liabilities as per the provisions of the share purchase agreement.

To participate in the bidding process, the bidder should have experience developing projects in the infrastructure sector in the last five years with aggregate capital expenditure of not less than ₹14.8 billion (~$192.16 million). However, the capital expenditure of each project should not be less than ₹2.96 billion (~$38.43 million).

Alternatively, the successful entity should have received aggregate payments not less than ₹14.8 billion (~$192.16 million) from its clients for construction works fully completed during the last five financial years. However, the payment received from each project should not be less than ₹2.96 billion (~$38.43 million).

The net worth of the bidder should not be less than ₹5.92 billion (~$76.86 million) based on any of the last three financial years. Also, the bidder’s net worth in any of the last three financial years should not be negative.

If the transmission service provider fails to achieve the commercial operation date of the project, then they will have to pay the nodal agency a sum equivalent to 3.33% of the monthly transmission charges applicable for the project for each day of delay up to 60 days of delay. Beyond that, it will have to pay at the rate of 5% of the monthly transmission charges as liquidated damages for such delay.

Recently, PFC Consulting invited bids to develop an ISTS network to evacuate 20 GW of power from the renewable energy zone in Rajasthan under Phase-III, Part-A1. In another tender, PFC Consulting had invited bids to develop ISTS to evacuate 20 GW of power from the renewable energy zone in Rajasthan under Phase-III, Part-A3.

Earlier, PFC had announced the incorporation of five of its SPVs as wholly-owned subsidiaries of PFC Consulting. The five SPVs incorporated under the PFC’s subsidiary were Bhadla Sikar Transmission Limited, Sikar-II Aligarh Transmission Limited, Khetri-Narela Transmission Limited, Bikaner-II Bhiwadi Transco Limited, and Ananthapuram Kurnool Transmission Limited.

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