Dakshin Haryana Bijli Vitran Nigam (DHBVN) has invited applications on a “first-come-first-serve” basis under Component A of Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) to set up 28.35 MW solar photovoltaic power projects in rural Haryana.

Component A of PM KUSUM allows for subsidies to set up 10,000 MW of decentralized ground or stilt-mounted grid-connected solar or other renewable energy-based power projects by the farmers on their land.

Interested farmers, farmer groups, panchayats, cooperatives, farmer producer organizations, and water user associations can submit applications to set up decentralized solar projects of 500 kW to 2 MW capacity within a 5 km radius of a substation.

The last date to submit applications is March 27, 2024. Applicants must submit a processing fee and bank guarantee along with relevant land documents. The processing fee is ₹5,000 (~$60) per MW, while the bank guarantee is ₹100,000 (~$1,200) per MW.

DHBVN requires 30% of an estimated ₹40 million (~$482,500) per MW cost of setting up a solar project as proof of sufficient funds, which is approximately ₹12 million (~$144,800) per MW. Additionally, the net worth of the developer for the financial year 2023 should not be less than ₹10 million (~$120,000) per MW of the capacity applied.

The solar power generated will be purchased by the Haryana Power Purchase Centre (HPPC) at a fixed levelized tariff of ₹3.11 (~$0.037)/kWh as per the Haryana Electricity Regulatory Commission norms.

The solar projects are to be set up, preferably on barren, uncultivable, pasture, or marshy lands. Agricultural land may also be utilized if the project is installed in a stilt fashion with adequate spacing between panel rows so that farming activities are not disturbed. The land requirement for setting up the project is about 4 acres per MW.

The selected bidders will have to sign a 25-year power purchase agreement with HPPC within two months of allotment. The projects must be commissioned within 15 months, failing which the performance bank guarantee will be encashed.

Late last year, the Uttar Haryana Bijli Vitran Nigam invited expressions of interest to set up 40 MW of decentralized grid-connected ground/stilt-mounted solar power projects under component A of PM KUSUM.

Earlier, Haryana’s Department of New and Renewable Energy announced subsidies of up to 75% for solar pumps ranging from 3 HP to 10 HP capacities under PM KUSUM for the year 2023-24.

Subscribe to Mercom’s India Solar Tender Tracker to stay on top of tender activity in real time.