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					</table>Madhya Pradesh Industrial Development Corporation (<a href="https://invest.mp.gov.in/" target="_blank" rel="noopener">MPIDC</a>) has been declared the successful bidder to set up manufacturing zones for solar and other renewable energy equipment, including power transmission-related equipment.
In April this year, the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> and the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) had <a href="https://mercomindia.com/ministry-invites-proposals-to-establish-renewable-energy/">invited</a> expressions of interest from state governments and special purpose vehicles (SPV) in partnership with state governments to set up manufacturing zones for power and renewable energy equipment.
Eight states &#8211; Andhra Pradesh, Bihar, Gujarat, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, and Telangana &#8211; had submitted proposals.
The project management agency evaluated the proposals, and MPIDC was selected as the ‘successful proposer.’ The Madhya Pradesh government will be responsible for forming an SPV within a month of approval from the scheme steering committee.
The zones will include manufacturing units to produce power and renewable energy equipment with a financial outlay of ₹10 billion (~$126.75 million). The project’s duration is until FY 2025-26.
The proposed funding for the three manufacturing zones has been kept flexible to support a common infrastructure and testing facility with a ceiling of ₹4 billion (~$50.67 million) for one manufacturing zone.
The manufacturing zones will have the infrastructure for manufacturing solar components like modules, inverters, ingots, backsheets, module mounting structures, and wind components like blades, hubs, shafts, and nacelles. They will also produce components for biomass, small hydro, and green hydrogen projects. The manufacturing zones will also produce components for transmission and distribution infrastructure.
The financial assistance will be released in four installments; 30% of the assistance will be released after the project’s final approval by the steering committee. The next 30% will be released after the bidder uses 60% of the first installment. It will be followed by another 30% which will be released after 100% of the first installment and 60% of the second installment has been used by the bidder. The final 10% will be released after submitting the completion certificate.
In February this year, the Indian Renewable Energy Development Agency (<a href="https://www.ireda.in/home" target="_blank" rel="noopener">IREDA</a>) announced an updated list of successful bidders to set up manufacturing capacities for a minimum of 10 GW of vertically-integrated high-efficiency solar modules under the production-linked incentive) program.
IREDA had <a href="https://mercomindia.com/ireda-invites-bids-to-set-up-solar-module-manufacturing-capacities-under-pli-program/" target="_blank" rel="noopener">invited</a> bids to set up 10 GW of high-efficiency solar module manufacturing capacities in May 2021. In November last year, IREDA had <a href="https://mercomindia.com/jindal-shirdi-sai-reliance-win-iredas-module-pli-auction/" target="_blank" rel="noopener">announced</a> the list of successful bidders.
Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real time.

Madhya Pradesh to Set Up Manufacturing Zones for Solar, Wind Energy Equipment

The <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a> has amended the expression of interest issued in April to set up manufacturing zones for power and renewable energy equipment.
As per the amendments, after approval of the detailed project report (DPR), the special purpose vehicle (SPV) will start executing works relating to the common infrastructure facility or common testing facility in collaboration with the Central Power Research Institute, National Institute of Solar Energy, and National Institute of Wind Energy.
Works relating to common infrastructure facility will have to be completed within 18 months and common testing facility within 36 months from the approval of DPR. Earlier, the time was set at 48 months from the approval of DPR.
The last date to submit the bids, which was June 8, 2022, has been extended to June 26.
The tender was <a href="https://mercomindia.com/ministry-invites-proposals-to-establish-renewable-energy/" target="_blank" rel="noopener">floated</a> by the Ministry of Power last month.
A new clause states that the SPV should allot land to the manufacturers on an outright sale basis or on a long-term lease basis for a minimum of 35 years or for a lesser time if requested by manufacturers. The SPV will allocate the land as per the agreed lease rental rates and terms and conditions in the proposal submitted.
The manufacturing zone will produce solar components like modules, inverters, ingots, backsheets, module mounting structures, and wind components like blades, hubs, shafts, and nacelles.
On the topic of private players being allowed to participate as an SPV with the state governments, the ministry clarified that a private entity or a central public sector undertaking (CPSU) in partnership with the state government could submit a proposal to set up manufacturing zones in their states.
The private entity, CPSU, and the state government should form a joint venture company wherein the state should hold a minimum of 26% equity. The formation of an SPV is not mandatory for states. The state government, state government entity, or the state PSU can submit a proposal to set up a manufacturing zone in partnership with the state government.
The ministry clarified that private entities could exit the project after manufacturing units are set up in at least 50% of the area earmarked or ten years after the award, whichever is earlier.
Replying to a query from a stakeholder as to whether anybody can set up manufacturing activities within the zone (including private) in plug-and-play mode, the ministry said that the manufacturing zone would be available to any investor.
To another query about the minimum extent of land required to be demarcated for common testing facility, the ministry stated that 150 acres would be made available for individual manufacturing units. For the development of common testing facility, the provision of land should be sufficient for testing facilities that may be required for the renewable and power equipment to be manufactured in the manufacturing zone.
In the budget announcement for the financial year (FY) 2022-23, the finance minister <a href="https://mercomindia.com/budget-2022-module-manufacturing-%e2%82%b9195-billion-pli-program/" target="_blank" rel="noopener">announced</a> an additional ₹195 billion (~$2.60 billion) for the production linked incentive (PLI) program, which was previously at ₹45 billion (~$590.65 million) to support vertically integrated gigawatt-scale manufacturing of high-efficiency solar modules.
Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.

Ministry to Expedite Setting up of Renewable Energy Equipment Manufacturing Zones

Bharat Heavy Electricals Limited (<a href="http://www.bhel.com/index.php/" target="_blank" rel="noopener noreferrer">BHEL</a>) has issued an operation and maintenance (O&amp;M) tender for a 50 MW solar project at Mandsaur in Madhya Pradesh for the National Thermal Power Corporation (<a href="https://www.ntpc.co.in/" target="_blank" rel="noopener noreferrer">NTPC</a>).
A 250 MW, NTPC project, has been divided into five blocks, each of 50 MW. BHEL had constructed a block of 50 MW.
According to Mercom’s <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener noreferrer">India Solar Project Tracker</a>, BHEL had <a href="https://mercomindia.com/ntpc-commissions-225-mw-solar-mandsaur-madhya-pradesh/" target="_blank" rel="noopener noreferrer">won</a> the bid to provide EPC services for the 50 MW solar project auctioned by NTPC out of the total 250 MW capacity at Mandsaur Solar Park in Madhya Pradesh in 2016.
The date for the submission of bids is November 4, 2019.
Interested bidders will need to submit an amount of ₹442,000 (~$6,259) as the earnest money deposit (EMD).
The detailed scope of work includes the operations and maintenance of the complete project within 38 months. It also involves furnishing all labor, materials, supervision, equipment, supplies, transport, to and from the site. According to BHEL, the successful bidder should ensure timely completion of work and must have an adequate quantity of tools, construction aids, and equipment.
<a href="https://mercomindia.com/bhel-tender-solar-projects-gujarat/" target="_blank" rel="noopener noreferrer">In August 2019</a>, BHEL had issued tenders for the operation and maintenance work of solar projects aggregating 30 MW in Gujarat.
Before this, another BHEL operation and maintenance tender for rooftop and ground-mounted solar projects aggregating 1.42 MW at several locations of Oil and Natural Gas Corporation (ONGC) in Assam.
Back in 2017, it was reported that NTPC had <a href="https://mercomindia.com/ntpc-commissions-225-mw-solar-mandsaur-madhya-pradesh/" target="_blank" rel="noopener noreferrer">commissioned</a> 225 MW out of the 250 MW solar project capacity at Mandsaur. Vikram Solar, BHEL and Tata Power won bids to develop 50 MW each and Lanco had won the bid to develop 100 MW.
Image credit: By Abengoa Solar &#8211; Abengoa Solar, CC BY <a href="https://commons.wikimedia.org/w/index.php?curid=12030638" target="_blank" rel="noopener noreferrer">1.0</a>

BHEL Issues Operation & Maintenance Tender for a 50 MW Solar Project in Madhya Pradesh

The <a href="https://mnre.gov.in/" target="_blank" rel="noopener noreferrer">Ministry of New and Renewable Energy</a> (MNRE) has issued draft guidelines for the development of decentralized solar power projects.
The MNRE has called for comments, suggestions, and opinions from the stakeholders before October 11, 2019.
The proposed guidelines apply to solar power projects connected to rural distribution substations of 33/11kV, 66/11 kV and 110/11 kV in their respective areas of jurisdiction. The draft mentions that the power distribution companies (DISCOMs) will notify substation-wise solar power capacity which can be injected in a rural distribution substation. Such capacities may be calculated based on the average energy or load requirement during the daytime.
As per the implementation arrangement, the MNRE in its proposed guidelines has mentioned that the DISCOM may decide the capacity of the solar project permitted to be set up for the connection to the grid. For example, in KUSUM program, the provision is for solar power projects of an individual capacity of up to 2 MW within a prescribed range of distance from the rural distribution substation, preferably 5 km, to avoid the high cost of sub-transmission lines and losses.
“However, DISCOMs need not be constrained by the provisions of the <a href="https://mercomindia.com/kusum-1-75-mn-solar-pumps-solarize-1-mn-water-pumps/" target="_blank" rel="noopener noreferrer">KUSUM project</a> and may decide the size and distance of the power project allowed to be connected and feed power into the grid. The solar power projects may be set up on any land, including agricultural lands by any individual or cooperative, or company,” states the MNRE.
The draft states that the DISCOM will provide connectivity at the substation and will have to ensure ‘must-run’ status to the solar projects by keeping the feeders ‘On’ during the sunshine hours of the day.
Further, the MNRE has proposed that for the selection of the decentralized renewable energy power projects, a DISCOM or any agency authorized by the distribution company should invite bidders to participate in the open competitive bidding process against the Request for Selection (RfS) for the development of the projects.
The bidder is expected to submit a non-refundable processing fee of ₹10,000 (~$140)/MW, and the net-worth of the bidders should not be less than ₹10 million (~$1.41 million)/ MW.
The MNRE will issue specifications and quality control orders applicable for solar modules, inverters, the balance of system (BoS) and other equipment from time to time, and all solar power projects should comply with the grid regulations.
The <a href="http://www.mnre.gov.in/" target="_blank" rel="noopener noreferrer">MNRE</a> is targeting the <a href="https://mercomindia.com/mnre-118-mw-phase-iii-decentralized-solar/" target="_blank" rel="noopener noreferrer">installation of 118 MW</a> of solar power capacity by March 31, 2020, through off-grid solar applications under Phase-III of Decentralized Solar PV Applications Program.

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