Maharashtra State Electricity Distribution Company Limited (MSEDCL) has issued a request for selection (RfS) to procure 865 MW of solar power from existing and new projects to be developed in the state.

MSEDCL has set a ceiling tariff of ₹3.10 (~$0.041)/kWh for the tender.

The last date to submit bids is February 28, 2022. Technical bids will be opened on the same day. The pre-bid meeting will take place on February 8.

Bidders must submit ₹100,000 (~$1,336)/MW as an earnest money deposit (EMD). In addition, the successful bidder should furnish ₹500,000 (~$6,681)/MW as a performance bank guarantee within 30 days from the date of issue of the letter of award.

Project specifications

Solar projects under construction and already commissioned projects, which do not have any long-term power purchase agreement with any agency, will be eligible to participate in the tender.

The successful bidders setting up new projects must commission within 12 months from issuing the letter of award.

MSEDCL will sign a 25-year PPA with the selected bidders from the commercial operation date of solar projects.

The minimum individual project capacity to be developed is 2 MW, and the maximum is 10 MW.

MSEDCL stated that the successful bidders should use only commercially established and operational technologies to develop solar projects to minimize the technology risk and commission projects on time.

The projects must be designed to deliver power at the 11/22 kV level substation of MSEDCL. The successful bidder should be responsible for getting the grid connectivity with MSEDCL.

MSEDCL said the capacity utilization factor (CUF) should not be less than 19% over a year.

Financial eligibility

To participate in the competitive bidding process, bidders should have a minimum annual turnover of ₹2.5 million (~$33,403)/MW of the quoted capacity in the financial year 2019-2020. Their net worth must not be less than ₹5.5 million (~$73,504)/MW of the quoted capacity in the last financial year.

The bidders should have internal resource generation capability in the form of profit before depreciation interest and taxes (PBDIT) for a minimum of ₹1 million (~$13,371)/MW of the quoted capacity on the last day of the previous financial year. Also, they must have principal approval from the lending institutions or banks committing a line of credit for a minimum of ₹1.25 million (~$16,716)/MW of the quoted capacity for satisfying the work capital requirement of solar projects.

 

In October 2021, MSEDCL invited bids to procure 1,250 MW of power from solar projects to be developed in various districts of Maharashtra.

Mercom had earlier reported that MSEDCL invited bids for 444 MW of decentralized solar projects of 500 kW to 2 MW capacity under component A of the Pradhan Mantri Kishan Urja Suraksha evam Utthan Mahabhiyan (PM-KUSUM) program in Maharashtra.

According to Mercom’s India Solar Tender Tracker, MSEDCL has invited bids for 14.09 GW of solar projects to date.