Tamil Nadu Invites Bids for 500 MW of Solar Projects Under Component A of KUSUM Program

The Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) has floated a tender to set up 500 MW of solar projects under Component-A of the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) program.

TANGEDCO invited bids from individual farmers, farmer groups, cooperatives, panchayats, farmer producer organizations, water use associations, or developers of projects with capacities ranging between 1 MW and 2 MW.

Bidders must make an earnest money deposit of ₹100,000 (~$1,372)/MW in the form of a bank guarantee. The last date for submitting bids is February 19, 2021.

The scope of work includes setting up, maintaining, and operating the solar power projects. The power from these projects must be supplied to TANGEDCO under a long-term power purchase agreement.

The projects must be installed within a five-kilometer radius of substations to avoid high sub-transmission line costs and reduce transmission losses. The state distribution company (DISCOM) set a ceiling tariff of ₹3 (~$0.041)/kWh for the power sold from these projects.

Renewable power generators cannot apply for more than one project at a particular substation or feeder. The projects must be commissioned within 12 months from the date of the letter of award.

Bidders are expected to present the registered documents for the land on which the project is to be set up. The land requirement for the projects is 3.704 acres/MW. They must also have a net worth of at least ₹10 million (~$137,219)/MW in any one of the last three financial years.

According to Mercom’s India Tender Tracker, tenders for 121 MW of solar projects have been floated in the country under Component-A of the PM KUSUM program by various organizations, including the Bangalore Electricity Supply Company Limited, Madhya Pradesh Urja Vikas Nigam Limited, and Meghalaya Power Distribution Corporation Limited.

In November 2020, the Ministry of New and Renewable Energy ramped up the solar capacity target for the PM KUSUM program from 25.75 GW to 30.8 GW by 2022. The ministry also reduced central financial assistance under the program to ₹340.35 billion (~$4.61 billion) from ₹344.22 billion (~$4.66 billion). The revised target is to be met in 2020-21.