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Bihar Invites Bids for 564 MW Distributed Solar Projects Under PM KUSUM

This project falls under Component-C of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) Program.

March 28, 2024. By Abha Rustagi

Bihar State Power Generation Company Limited (BSPGCL) has initiated the bidding process for the establishment of 564 MW grid-connected distributed solar power projects across the territories served by South and North Bihar Power Distribution Companies.

This project falls under Component-C of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) Program, aimed at promoting solar energy adoption and rural electrification.

The project scope encompasses the installation of necessary infrastructure, including 11 kV lines to link the projects with substations, as well as the implementation of a remote monitoring system. Successful bidders will be responsible for the operation and maintenance of the projects for a duration of 25 years.

With an estimated cost of INR 35 million/MW, the project seeks to attract bids from qualified developers interested in contributing to Bihar's renewable energy landscape. Interested parties must submit their bids by April 5, 2023, with bid opening scheduled for the same day. As part of the bidding process, bidders are required to provide an earnest money deposit (EMD) of INR 100,000/MW.

Selected bidders will further need to furnish a performance bank guarantee amounting to INR 100,000/MW. Upon selection, developers are mandated to commission the projects within 18 months of signing the power purchase agreement (PPA), underscoring the commitment to timely project execution.

Land availability is a crucial requirement, with bidders obligated to identify 100 percent of the required land at the time of bid submission. To incentivize participation, developers stand to receive central financial assistance equivalent to 30 percent of the estimated project cost, supplemented by an additional financial incentive of INR 4.5 million/MW from the state government.

The bidders are mandated to demonstrate a minimum net worth of INR 10.5 million/MW as of the last day of the previous financial year.

Furthermore, adherence to quality standards is essential, with modules used in the projects required to be listed in the Ministry of New and Renewable Energy's Approved List of Models and Manufacturers.

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