Coal India Subsidiary Floats EPC Tender for a 15 MW Solar Project in Madhya Pradesh

CIL Navikarniya Urja, a wholly-owned subsidiary of Coal India Limited (CIL), has invited bids for the design, engineering, procurement, construction (EPC), and commissioning of a 15 MW solar power project along with the associated transmission system in the Pench area of Western Coalfields (WCL) in Madhya Pradesh.

The successful bidder will also have to provide operation and maintenance services for the project for five years.

The last date to submit the bids is March 30, 2022. Bids will be opened on the following day.

The project’s estimated cost is ₹881.9 million (~$11 million).


Interested bidders will have to submit ₹5 million (~$65,247) as an earnest money deposit to participate in the bidding process.

The successful bidder will have to deposit a performance security amount calculated at 5% of the contract value within 21 days of the letter of award issuance.

Power generated from the proposed solar power plant will be evacuated from Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company’s (MPPKVVCL) 33/11 kV Tendukheda substation (8 MVA & 5 MVA transformer) through a 33 kV single circuit transmission line. The developer will be responsible for acquiring the connectivity approval.

WCL will sign a long-term open access (LTOA) agreement with MPPKVVCL and the Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company to consume the power at its load points.

The solar power developer should ensure the generation of 31.98 MU of electricity for the first year with the permissible level of degradation of 0.7% for the subsequent years.

The capacity utilization factor (CUF) should be 24.34% for the first year, with the permissible level of degradation of 0.7% for the subsequent years.

The bidders must submit the certificate of possessing minimum working capital of ₹238.4 million (~$3.11 million), including access to lines of credit and availability of other financial resources to meet the project’s financial requirements.

If the developer fails to complete the work within the stipulated time, they will have to pay 0.5% of the contract price per week of delay, subject to a maximum of 10% of the total value as liquidated damages.

Recently, CIL Navikarniya Urja invited bids for the design, engineering, procurement, supply, construction, erection, testing, and commissioning with an associated transmission system of a 25 MW grid-connected solar project at Bhojudih Coal Washery in Purulia, West Bengal.

In April last year, CIL had announced forming two wholly-owned subsidiaries for undertaking solar photovoltaic manufacturing and renewable energy projects. While CIL Solar PV Limited was incorporated for manufacturing in the solar value chain (ingot-wafer-cell-module), CIL Navikarniya Urja Limited was formed for renewable energy projects.

According to Mercom’s India Solar Tender Tracker, Coal India has so far floated tenders for 200 MW of ground-mounted solar power projects.