11

May

2

MNRE issues Methodology (Draft) for 750 MW Solar PV projects under JNNSM Phase- II, Batch- I

by Harini

Most of the guidelines mentioned in the methodology (draft) issued by MNRE on 9th May, 2013 are same as those mentioned in the Draft guidelines document issued by them on 18th April, 2013. This methodology (draft) is intended for stakeholders’ consultation and suggestions/feedback may be e-mailed to SECI. This document shall form the basis for preparation of final RfS document based on which bids will be invited by SECI.

Changes/additions identified in this document are mentioned below. Our blog on the earlier released guidelines can be accessed here.

Total Capacity offered:

  • 750 MW capacity will be divided between Part- A and Part- B projects
  • Capacity split between each part is not mentioned in this document
  • Bidders can apply for projects under either Part- A or Part- B or for both Part- A & Part- B

The clause “If the project fails to generate any power continuously for 1 year within 25 years or its assets are sold or the project is dismantled during the tenure of the project, SECI will have a right to claim assets equal to the value of VGF granted and paid” is under review

Qualification criteria:

  • Financial Criteria: Net worth required for proposals submitted under both Part- A and Part- B in line with the eligibility criteria mentioned in the previously released guidelines will be evaluated considering their combined bids given in Part-A and Part-B
  • Domestic Content Requirement (DCR): It is applicable only for projects under Part- B. The details of this requirement are under review
  • Companies eligible for participation:
    • Companies incorporated in India under the Companies Act 1956
    • A foreign company can also participate on standalone basis or as a member of consortium at RfS stage. But before signing of PPA it has to form an Indian Company registered under the Company Act, 1956
    • Companies shortlisted based on RfS can also execute the project through a Special Purpose Vehicle (SPV). However the SPV has to be formed before signing of PPA

Structuring of the Bid selection process:

  • Single stage, two envelope bidding - Bidders have to submit both Techno-commercial bid and Financial bid (VGF Requirement) in response to RfS in two separate envelopes

Power Purchase Agreement (PPA): As mentioned in the earlier released draft guidelines, PPA is to be executed between SECI and Selected Bidder(s). However in this document there is no mention of SECI issuing letters to State Utilities/ DISCOMs to invite ‘Expression of Interest’ from State Utilities/ DISCOMs willing to procure the power.

Project Implementation timeline:

Methodology (draft) JNNSM Phase II Batch I

Methodology of bid evaluation and selection of projects:

  • 1st Step – Techno-Commercial evaluation
  • 2nd Step – Financial Bid (VGF requirement) evaluation
  • Details of evaluation and selection of projects is provided in Section 4 and formats of financial bid evaluation are provided in Section 6 of the methodology (draft) document

The original methodology (draft) issued by MNRE can be downloaded here.

2 thoughts on “MNRE issues Methodology (Draft) for 750 MW Solar PV projects under JNNSM Phase- II, Batch- I

  1. Pingback: MNRE announces Revised Draft Guidelines for selection of 750 MW Solar PV projects through VGF | EfficientCarbon

  2. Pingback: 75% of 750 MW under JNNSM Phase - II, Batch - I to have DCR | EfficientCarbon

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