The Indian Renewable Energy Development Agency’s (IREDA) tender for 5 GW grid-connected solar projects (Tranche-III) under the central public sector undertaking (CPSU) program (Phase-II) has received a strong response from the bidders. It has been oversubscribed by 1,960 MW, according to Mercom sources.
The bidders’ list includes NTPC, the Solar Energy Corporation of India, NHPC, SJVN, NLC India, IRCON International, and Indian Oil.
In May this year, IREDA had extended the bid submission date to May 31, 2021. IREDA had also issued amendments to the request for selection issued for the projects, and the ceiling tariff for the projects was increased to ₹2.45 (~$0.033)/kWh from the earlier ₹2.20 (~$0.030)/kWh.
The tender was floated in January this year, and IREDA had capped the tariff for the project at ₹2.20 (~$0.030)/kWh.
In March 2019, the President of India had accorded approval to implement Phase-II of the CPSU program to set up 12 GW of grid-connected projects for self-use or use by government entities.
Irrespective of the capacity awarded to the developer, the scheduled commissioning date for the project’s full capacity will be on or before 30 months from the date of issuance of the letter of award (LoA).
The maximum time allowed for the commissioning of the full project is now 36 months from the date of the issuance of the LoA.
Also, the selected bidder will have to submit the duly signed copy of the contract award to the engineering, procurement, and construction (EPC) contractor within 365 days from the date of the issuance of the LoA.
According to IREDA, 50% of the VGF would be released once the contract is awarded to the EPC contractor by the developer. The developer must sign the EPC agreement within 12 months from the issuance of the LoA.
The government producers who want to use renewable power as auxiliary power for power generation projects may inform the Central Electricity Regulatory Commission, State Electricity Regulatory Commissions, or Joint Electricity Regulatory Commission.
Earlier this year, the Ministry of New and Renewable Energy had issued amendments for setting up 12 GW of solar projects with viability gap funding (VGF) by CPSUs for self-use or use by government entities.
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Rakesh is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.