Southern Railway has invited bids to set up solar projects with a cumulative capacity of 40 MW at Chennai, Salem, and Tiruchirappalli divisions in Tamil Nadu.

Bids must be submitted by May 4, 2026.

The estimated cost of the project is ₹5.21 billion (~$55.1 million).

Bidders must submit a tender document fee of ₹34,810 (~$368.2) and an earnest money deposit of ₹42.72 million (~$452,000).

Selected bidders must furnish a performance bank guarantee of ₹1.60 million (~$16,950)/MW.

The scope of work includes the design, engineering, procurement, civil works, installation, testing, and commissioning along with the supply of power under a power purchase agreement.

Selected bidders will also be responsible for the comprehensive operation and maintenance of the solar projects, including associated transmission systems and bays at DISCOM or intrastate transmission system substations, for 25 years from the completion of the trial run.

Bidders must have experience in the supply, installation, testing, and commissioning of at least 8 MW of solar projects executed for government entities, public sector undertakings, or publicly listed companies.

They must have an average annual turnover of ₹15 million (~$158,700) and maintain a positive net worth over the last three financial years.

Liquidated damages for shortfall in power generation will be calculated at a rate derived from ₹2.65 (~$0.028) multiplied by 10.6384 (~$0.113)/kWh. During the 25-year O&M period, the applicable rate for shortfall in generation will be ₹2.65 (~$0.028)/kWh.

Last November, Southern Railway invited bids to install rooftop solar systems with a cumulative capacity of 1 MW at various locations at Rameswaram station under the Madurai Division, Tamil Nadu.

In the same month, the South Eastern Railway invited bids for 2.059 MW grid-connected rooftop solar power systems under the Santragachi Division jurisdiction in Howrah, West Bengal.

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