EPC Tender Issued for a 2 MW Solar Project in Gujarat, Concessions for Local MSME Bidders

Gujarat State Electricity Corporation Limited (GSECL) has issued a request for proposal (RfP) from engineering, procurement, and construction (EPC) contractors to install and commission a 2 MW grid-connected solar power project at Utran power station in Gujarat.

The scope of work includes design, engineering, manufacture, supply, procurement, erection, testing, and commissioning of the project. The selected developer will have to take care of the project’s operation and maintenance (O&M) for five years after commissioning the project.

The estimated cost of the project is ₹80 million (~$1.05 million). The project must be completed within five months from the issue of notice to proceed.

The last date to submit the bids is April 20, 2022. Bids will be opened on April 27.


Micro, small, and medium enterprises (MSME) bidders registered in Gujarat must furnish an earnest money deposit (EMD) of ₹200,000 (~$2,632). All other bidders must furnish an EMD of ₹300,000 (~$3,948).

A successful MSME bidder registered in Gujarat must submit 4% of the total project cost as a security deposit cum performance bank guarantee (PBG). Other successful bidders must submit 10% of the total project cost as PBG.

The successful bidder must submit an operation and maintenance (O&M) bank guarantee of 2.5% of the total project cost.

The successful bidder must also make all necessary arrangements for evacuation and injection of surplus power into the grid at the interconnection points, including constructing a 6.6 kV HT / 415V LT underground or overhead cable from the solar project to the delivery point within the GSECL power station. To minimize voltage drops, bidders must also lay HT or LT cables from the solar project end to the evacuation point. Four units of three plus one spare cable are required for the project.

The bidder eligible for the tender should have designed, supplied, erected, and commissioned grid-connected solar power projects with a cumulative installed capacity of 5 MW. At least one commissioned project should have been 1 MW or higher than the total bid capacity. Alternatively, two projects of 500 kW or above higher capacity or three projects of 250 kW or above will be considered too. The reference projects should be successfully operating.

The cumulative turnover of the bidder for the last three financial years should be at least ₹70 million (~$921,405), and the bidder must have a positive net worth during the last financial year.

If the successful bidder delays the commissioning of the project by 30 days, ₹4,500 (~$60)/MW/day will be charged as liquidated damages. The liquidated damages will be proportionate to the capacity not commissioned by the commercial operation date.

If the project is delayed by more than 30 days but in less than 60 days, ₹5,500 (~$72)/MW/day will be charged as liquidated damages. If the project is delayed by more than 60 days, the liquidity damages will be ₹6,500 (~$85)/MW/day.

The upper ceiling for total liquidated damages for delay will be 10% of the contract value.

GSECL has also invited bids from EPC contractors to develop a 16 MW solar project at Mora in Gujarat.

According to Mercom’s India Solar Tender Tracker, GSECL has issued EPC tenders for 1.8 GW of solar capacity to date.