The National Solar Energy Federation of India (NSEFI) has sought the intervention of the Ministry of Micro, Small and Medium Enterprises (MSMEs), asking it to issue a direction to the National Thermal Power Corporation (NTPC) to exempt MSMEs from the bid security and earnest money deposit (EMD) for its solar tender.

NSEFI, the umbrella organization of solar companies, in its letter to Giriaj Singh, the minister of state (MSMEs), has mentioned that NTPC has not exempted MSMEs from the payment of EMD for its engineering, procurement, and construction tender for 923 MW of solar projects. The estimated cost of the project is ₹50 billion (~$704 million).

NSEFI requested the minister to issue “suitable clarification to NTPC,” enabling the MSME registered companies to submit their bids with the exemption of EMD. The letter has also been marked to the Prime Minister’s Office (PMO).

Micro, Small, and Medium Enterprises Development Act was published in June 2016. It aims to facilitate the promotion, development, and enhancement of the competitiveness of micro, small, and medium enterprises and the ‘Make in India’ concept.

In its letter to the minister, the NSEFI states, “With various preferential business-conducive provisions of the Act, it is bound to give Make in India concept a much-needed stimulus by promoting the participation of MSMEs in building public infrastructure.”

The federation also mentions that as per the Gazette notification of March 2012 for Public Procurement Policy, those who are registered under MSMEs are exempted for the earnest money deposit and document fee.

Meanwhile, when Mercom contacted a senior member of NSEFI, he informed that they have not yet received any response from the ministry.

Previously, the solar MSME segment has opined to Mercom that the government has launched various policy measures to support the domestic solar manufacturing industry, but they have ended up creating more hurdles rather than simplifying issues.