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The Maharashtra State Electricity Distribution Company (MSEDCL) has invited bids to procure power from 500 MW inter or intra-state grid-connected solar power projects through long-term contracts.

The last day to submit the bids is August 30, 2022. The bid opening date will be announced later.

Bidders must pay ₹25,000 (~$319) towards the cost of bidding documents and ₹300,000 (~$3,791) as a non-refundable bid processing fee. They must also submit an earnest money deposit of ₹472,000 (~$5,965)/MW of quoted capacity. Successful bidders must submit ₹1.3 million (~$16,419)/MW of quoted capacity as a performance bank guarantee.

MSEDCL will enter into a power purchase agreement (PPA) with the selected bidders to purchase solar power for 25 years from the scheduled commercial operation date in the case of proposed or new solar projects. For existing projects, the tenure would be 25 years from the PPA execution date.

The minimum project capacity for intra-state projects will be 25 MW at a single location with a minimum bid capacity of 50 MW for projects. For inter-state projects, the minimum project capacity will be 50 MW at a single location with a minimum bid capacity of 50 MW.

The maximum bidding capacity for a single bidder is 500 MW, subject to satisfying the technical and financial criteria. Further, the project capacity will be in multiples of 25 MW for intra-state projects and 100 MW for inter-state projects beyond the minimum project capacity.

The net worth of the bidders for the financial year ended on March 31, 2021, must not be less than ₹10 million (~$126,301)/MW of the quoted capacity. Bidders must have a minimum annual turnover of ₹2.5 million (~$31,575)/MW of the quoted capacity during the previous financial year.

Bidders should have an internal resource generation capability in the form of Profit Before Depreciation, Interest, and Taxes (PBDIT) for a minimum of ₹1 million (~$12,630)/MW of the quoted capacity.

They should have a sanction letter from lenders for a minimum of ₹1.25 million (~$15,787)/MW of the quoted capacity toward meeting the working capital requirement.

The successful bidder must secure grid connectivity with the Maharashtra State Electricity Transmission Company.

The declared capacity utilization factor (CUF) should not be less than 19% over a year. The generator should maintain generation to achieve annual CUF within + 10% and ‐ 15% of the declared value until the end of ten years from the commercial operation date. The annual CUF should be a minimum of 17% and within +10% and ‐ 20% of the declared value of the annual CUF.

In June, MSEDCL invited bids to procure power from 500 MW of interstate or intrastate grid-connected solar projects on a long-term basis.

According to Mercom’s India Solar Tender Tracker, MSEDCL has floated tenders for 19.8 GW of solar projects.