MNRE Relaxes Bidder Selection Rules under PM KUSUM Scheme

As per the new revisions of the government, to guarantee quality and post-installation services only manufacturers of solar water pumps or manufacturers of solar panels would be permitted to participate in the bidding process

August 20, 2019. By News Bureau

In a bid to deliver additional boost for the installation of 17.50 lakh solar powered agricultural pumps in the country, the Ministry of New and Renewable Energy (MNRE) has announced it has made some revisions in its previously issued guidelines for execution of Pradhan Mantri Kisan Urja Suraksha evam utthan Mahabhiyan (PM KUSUM) scheme.

For centralized tendering, the nominated CPSUs will issue region-wise/ state-wise tenders, nevertheless, their role will be restricted to selection of bidders and finding of rates.

As per the new revisions of the government, to guarantee quality and post installation services only manufacturers of solar water pumps or manufacturers of solar panels would be permitted to participate in the bidding process.

MNRE further added that, to have comprehensive competition all qualified bidders nominated on the basis of technical and financial criteria stipulated in the bidding document and under the price bracket of (L1 + 10 percent of L1) will be empaneled on acceptance of L1 price and have equal opportunity to work in market mode.

However, in case the number of such bidders empanelled within the price bracket of (L1 + 10 percent of L1) are less than 5, the price bracket shall be extended to (L1 + 15 percent of L1), so that enough number of bidders are empanelled for better competition, it added.

Further, the selection of beneficiaries and implementation of scheme would be the responsibility of the State Implementation Agency.

However, MNRE’s former guidelines says “for centralized tendering the designated CPSUs may come out region-wise/State-wise tenders, however, their role will be limited to selection of bidders and discovery of rates. To ensure quality and post installation services only manufacturers of solar water pumps or controllers or manufacturers of solar panels would be allowed to participate in the bidding process. Normally, three bidders would be selected and they have to match L1 rates and the quantity allocated to those who agree to match the L1 rates them would be 50 percent, 30 percent, and 20 percent of the total tender quantity respectively in the ascending order of rates quoted by them. Number of bidders selected may vary depending upon the tender quantity. The selection of beneficiaries and implementation of scheme would be the responsibility of the State Implementation Agency. Cluster based approach would be used for allocation of districts to the selected bidders to optimize the resources and ensure quality services made available to the farmer. As far as possible contiguous districts would be allotted to the successful bidders, with the total requirements of pumps in the allocated area matching the quantity allotted to them.”

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