REC Invites Bids to Set up Transmission System to Evacuate 8.1 GW of Solar from Rajasthan

REC Limited has invited bids to establish transmission systems to evacuate power from solar energy zones (SEZs) in Rajasthan.

The invitation has been extended to transmission service providers (TSPs) under phase II for part-A, B, and C of the transmission infrastructure program to evacuate 8.1 GW of power from the SEZs.

The last date for submitting the bids for all three projects is December 21, 2020. Prospective bidders are expected to pay ₹590,000 (~$8,011) as a tender document fee.

This year, the state-owned power transmission company, Power Grid Corporation of India Limited (PGCIL), had invited bids to establish transmission systems to evacuate power from solar energy zones in Rajasthan under phase II, part-A. The same tender was later passed on to REC, which has now undertaken parts B and C. The project covers Fatehgarh, Bhadla, and Sikar.


Project A covers Ramgarh-II PS – Fatehgarh- II PS 400 kV; Project B covers Fatehgarh-II PS – Bhadla-II PS 765kV D/C line; and Project C covers the establishment of 765/400 kV, 2×1500 MVA at Sikar – II with bus reactors.

The estimated completion time for Project A and B is 16 months from the date of awarding the contract. For Project C, it is 18 months.

The transmission system for evacuation of 8.9 GW under phase-I has already been taken up for implementation. The transmission system for strengthening the evacuation of power from solar energy zones in Rajasthan under Phase II includes evacuation of 1.05 GW in Bhadla complex, 2.2 GW in Fatehgarh complex, 1.9 GW in Ramgarh, and 2.95 GW in Bikaner.

The infrastructure development includes a high capacity 765 kV and 400 kV transmission system interconnecting Bhadla-II, Fatehgarh-II, Sikar, and Khetri along with the establishment of 765/400kV new substation at Sikar-II and Narela and another 400/220kV new substation at Bikaner-II and Ramgarh-II.

The objective of the bidding process is to select a bidder who would acquire 100% equity shares of the Ramgarh (New) Transmission Limited along with all its related assets and liabilities. The Ramgarh (New) Transmission Limited would be responsible for ensuring that it undertakes the project development and provides transmission service to the long-term transmission customers.

Scope of work

The scope of work for part A, B, and C includes-

  • Establishment, operation, and maintenance of the project on a build, own, operate, and maintain (BOOM) basis.
  • Completion of all the activities for the project, including survey, detailed project report formulation, arranging finance, project management, necessary consents, clearances, permits, land compensation.
  • Design, engineering, equipment, material, construction, erection, testing, and commissioning.

Experience

For Project A, the bidder should have experience in development projects (not necessarily in the power sector) in the last five years with an aggregate capital expenditure of not less than ₹5 billion (~67.93 million). However, each project’s capital expenditure should not be less than ₹936 million (~$12.71 million).

For Project B, the bidder should have an aggregate capital expenditure of not less than ₹5 billion (~67.93 million). Each project’s capital expenditure should not be less than ₹700 million (~$9.51 million).

For Project C, the bidder should have an aggregate capital expenditure of not less than ₹12.357 billion (~167.85 million). Each project’s capital expenditure should not be less than ₹2.47 billion (~$33.57 million).

Prospective bidders for the three projects should have executed similar projects either by themselves or own at least 26% of the shareholding in the company that has executed the projects.

Financial Eligibility

Prospective bidders applying for projects A and B must have a net worth not less than ₹2.5 billion (~$33.98 million) in any of the last three financial years.

Meanwhile, prospective bidders applying for project C must have a net worth not less than ₹6.18 billion (~$84 million) computed as the net worth based on the unconsolidated audited annual accounts of any of the last three financial years, immediately preceding the bid deadline.

Mercom had earlier reported the implications of the Ministry of Power’s waiver on the Interstate Transmission System (ISTS) charge, which is currently only applicable to projects commissioned before December 31, 2022. Meanwhile, transmission projects are expected to get delayed beyond this date due to the ongoing pandemic.