Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has invited bids for setting up 150 MW of grid-connected solar power projects under component C2 of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program through the RESCO model.

The projects will help the solarization of segregated agriculture feeders at distribution substations.

The successful bidder will also have to take care of the project’s operation and maintenance (O&M) for 25 years.

The last date to submit the bids online is May 23, 2023. Bids will be opened the following day.

Bidders will have to submit ₹5,000 (~$60.85) +18% GST as a bid processing fee. Bidders must also submit ₹100,000 (~$1,217)/MW as an earnest money deposit.

The successful bidder must furnish ₹100,000 (~₹1,217)/MW as a performance bank guarantee.

For any contract year except for the first year of operation, the solar power generator will be required to achieve a minimum capacity utilization factor (CUF) of 15% annually during the power purchase agreement (PPA) period.

The project developer will receive central financial assistance (CFA) at 30% of the estimated project installation cost and a maximum of ₹10.5 million (~$127,791)/MW under the program.

CFA of up to 100% of the total eligible amount will be released to the Renewable Energy Service Company (RESCO) developer through DISCOM on the successful operation and performance of the solar project for two months after the commissioning.

The subsidy from the government of Uttar Pradesh under the Viability Gap Funding (VGF) will be a maximum of ₹5 million (~$60,853)/MW. 100% of the total eligible VGF will be released to the RESCO developer through UPNEDA in phases as mentioned below:

• 75% of the total VGF will be released on successfully commissioning the project capacity.
• The balance of 25% will be released progressively over the next five years in five equal installments of 5% each on the Uttar Pradesh Power Corporation’s (UPPCL) recommendation against the fulfillment of the prescribed specification of the PPA executed with UPPCL and the successful O&M of the project.

To participate in the bidding process, bidders should have experience in supply, installation, commissioning, and O&M of grid-connected solar power projects of a total cumulative capacity of 1 MW during the last three years in India with any government or private organization.

The average annual turnover of bidders during the last three financial years should be at least ₹20 million (~$243,412)/MW of the quoted capacity.

Also, the net worth of bidders should have a positive net worth during the last three financial years and should be a minimum of ₹10 million (~$121,706)/MW of the quoted capacity in any one year.

Last year, UPNEDA had invited bids to set up 98 MW of solar projects of 0.5 MW, 1 MW, 1.5 MW, and 2 MW capacity on agricultural land, pasturelands, and marshlands of farmers in Uttar Pradesh under the KUSUM program.

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