Ashis Parida March 7, 2020
For installing a 100 MW of solar project in a district Odisha, request for proposal (RFP) has been issued by Vedanta Limited. This installation of the solar project will be commissioned in Jharsuguda, 328 Km away from the capital of Odisha. Successful commission of issues the solar project will also help Vedanta in meeting its Renewable Power Purchase Obligations (RPO).
Build, Own, Operate and Transfer (BOOT) mechanism will be followed for this project in which there will be an option to get converted into the captive mode. The solar project will be carried out within and nearby to its aluminum plant in Jharsuguda on land possessed by Vedanta itself. Vedanta will provide the land free of cost to the successful bidder, with a strict user term that the land will solemnly be used for solar projects only and will be handed over back to Vedanta after completion of the tenure of the PPA.
March 18 of the running year has been kept as the deadline for the submission of the tender bids and per-bid meeting will be on March 5, 2020.
As stated by Vedanta the tariff cap that has been fixed for the solar project will be of ₹3 (~$0.04)/kWh.
Against Earnest Money Deposit (EMD) an amount of ₹200,000 (~$2,754)/MW has to be paid by the interested bidders. The solar project needs to be executed within 6 months from the date of signing of the Power Purchased Agreement (PPA). The bidder is required to develop a transmission line (33kV) from the solar project area to the delivery point at 33 kV at 400 kV switchyard.
In order to maintain the status of the undertaking as captive plant under the law, the effective bidder needs to make a project organization for commissioning the project and would be under obligation to allow Vedanta to acquire 26% equity in such organization at book value within one year of the project being commissioned for the entire contracted capacity.
Vedanta Limited Jharsuguda will be the sole proprietor for business and lawful rights such as renewable energy certificates, green energy certificates, Clean Development Mechanism (CDM) benefits related to the solar energy procured under the PPA and the agreement signed with the effective bidder.
The interested bidders ought to have an experience with the establishment of at least 20 MW of Project capacity over the most recent five years. As far as the financial eligibility criteria are concerned, the bidder should have a net worth of at least ₹1 billion (~$13.77 million) for 100 MW of capacity in the last three financial years (FY).
If the bidder intends to submit a bid for a lower capacity, they must have a net worth of ₹10 million (~$137,682)/MW of the bid capacity. The prospective bidder must have an annual financial turnover of ₹500 million (~$6.9 million) in any year during the last five years.
Vedanta Limited is also planning to develop a solar project with a minimum capacity of 20 MW and a maximum capacity of 50 MW for captive consumption in Rajasthan’s Barmer district.
