Odisha Tenders 200 MW of Solar Projects with Pass Through Option for Duties

The Grid Corporation of Odisha (GRIDCO) has tendered 200 MW of grid-connected solar photovoltaic (PV) projects to be developed in Odisha.

The bid-submission deadline is April 29, 2018. For the development of these projects, GRIDCO will enter Power Purchase Agreements (PPAs) with the developers for a period of 25 years.

In the quoted tariff, GRIDCO has provided the bidders with a pass through option in case there is any change in the statutory laws like anti-dumping or safeguard duty on the solar PV modules.

However, this pass through in tariff will be applicable for any imposition of anti-dumping or safeguard duty between the time-period of date of submission of the bid and invoice date of PV modules procured for the project.

In March 2018, Mercom had reported the Power Minister as saying that the bidding guidelines for grid-connected solar PV projects in the country may soon be amended to give bidders a way to nullify the effects of a potential safeguard duty.

In the GRIDCO tender, the scope of work includes the engineering, procurement, design, supply, construction, and commissioning of the solar PV project along with the transmission network up to the delivery point. The bidders must also identify land for the development of solar PV project.

A single bidder can bid for a minimum of 10 MW and a maximum of 100 MW. The project will be developed in blocks of 5 MW each. The solar PV projects will be developed under Build Own Operate (BOO) basis.

All approvals, permits and clearances required for setting up of the solar PV project (including connectivity) and those required from the state government and the local bodies will be the responsibility of the bidders.

GRIDCO has mandated that the successful bidders must submit documentary evidence for securing connectivity with grid from State Transmission Utility (STU) within nine months from the date of issuance of the Letter of Intent (LoI).

The project commissioning timeframe is 18 months from date of award of contract. In case of failure to achieve this milestone, GRIDCO will encash the Performance Bank Guarantee (PBG) in the following manner:

Delay up to three months from the scheduled commissioning date (SCOD): GRIDCO shall fine ₹20,000 (~$307.347 per MW on a daily basis from the PBG proportionate to the balance capacity not commissioned. For example, out of 20 MW allotted to a developer, if 2 MW is not commissioned till 25 days post SCOD, then a penalty of ₹10,00,000 (~$15,367) will be charged.

In case the commissioning of the project is delayed beyond three months from SCOD, then GRIDCO will charge ₹50,000 (~$768.368) per MW on a daily basis from the PBG proportionate to the balance capacity not commissioned till the entire bank guarantee is encashed.

In case the commissioning of the project is delayed beyond three months, the PPA capacity will be reduced to the capacity commissioned and the PPA for the balance capacity will stand terminated and would be reduced from the selected project capacity. In addition, the PBG will be encashed as per both Section (a) & (b) above.

According to Mercom India Solar Project Tracker, Odisha has an installed solar capacity of ~90 MW to date and a project pipeline of ~284 MW.