5 GW CPSU Tender Results- NTPC, SJVN, NHPC Grab 1GW Each

The 5 GW CPSU tender managed by Indian Renewable Energy Development Agency Ltd. (IREDA), the agency appointed by Ministry of New & Renewable Energy (MNRE) for the implementation of the CPSU Scheme Phase II, finally has a winners list. The tender, part of the 12 GW CPSU scheme, has been hanging for a while, and the government will hope that the first projects are visible by 2023 itself.

NTPC Limited, SJVN, NHPC, NLC India, and IRCON International are the PSU’s that have finally won. Tariffs for the tender had been capped at Rs 2.45 per unit, after originally being placed at Rs 2.20 per unit. Originally floated in January this year, the tender has been through some changes, including  a request (accepted) to increase minimum tariffs from Rs 2.20 to Rs 2.45 per unit.

NTPC predictably leads the stakes, with 1,990 MW capacity won, by quoting a VGF (Viability Gap Funding) requirement of Rs Forty four lacs, ninety five thousand. The maximum permissible VGF for the tender was Rs 55 lacs per MW.

SJVN quoted the lowest VGF requirement of Rs 44, 72,000 to win a capacity of 1000 MW. The third GW winner, NHPC quoted  a VGF requirement of Rs 44.9 million lacs/MW.

NLC India won its 510 MW by quoting Rs 44.74 lacs, while Ircon International won 500 MW with a VGF requirement of Rs 44.9 lacs /MW.

Interestingly, even SECI had been among the bidders with a 1200 MW bid, besides Indian Oil with a 250 MW bid, although both have finally missed the cut. We had predicted NTPC winning its full bid for 2500 MW, but a higher VGF requirement seems to have limited it to 1900 MW, and allow IRCON in.

Implementing agency IREDA is supposed to release 50% of the VGF on award of contract. With a deadline of 36 months from the day LOA’s are given, developers are supposed to sign EPC agreements within 12 months.