93% of MSEDCL Tender For 535 MW Solar Power Goes To Railways Firm

In an interesting development, Braithwaite India and Co. Limited, a firm under the Ministry of Railways, has got an allotment of 500 MW out of a 535 MW of bids  accepted by MSEDCL (Maharashtra State Electricity Distribution Company Limited),  under the ‘Mukhyamantri Saur Krishi Vahini Yojana’ from 2 to 10 MW capacity projects. For the record, BraithwaiteIndia has indicated 119 sites where it will consider putting up the  500 MW projects it has won. The approved price for the power has been taken on board at Rs 3.10 per unit.

Besides Braithwaite India, there are other 5 other bid winners at the same price of Rs 3.10/unit.

After entering into PPAs with the winners for a 25 year period, the power generated will also be counted towards MSEDCL’s RPO obligations for the state pf Maharashtra.

The approval for the price for the current tender follows MSEDCL’s two previous tenders for 1300 MW and 1250 MW each, where it could finally attract acceptable bids for only 111 MW and 385.3 MW respectively, at tariffs ranging between Rs 3 to Rs 3.10 per unit. The objkective was to seek total acceptable bids amounting to 1300 MW.

This, to make up for the difference, a third tender of 865 MW was launched, where it has finally ended up with acceptable bids of 535 MW.

Staggered tenders had been allowed by MERC, the state regulator to allow for the deviation sought by MSEDCL in MNRE Guidelines to consider the minimum CUF of 19% instead of 15%. In the said Order, the Commission allowed MSEDCLto proceed with a continuous bidding process for the selection of bidder under MSKVY. Further, regarding ceiling Tariff rate, the Commission has stated that ceiling rate shall be determined by the DISCOM as per its own due diligence. And approved by MERC accordingly.

The high share for a single bidder is certainly a little odd, but seen in the context of the 119 locations they plan to use, not outside the rules by any stretch. For Braithwaite India Limited, a wagon and other metals related fabricator for bridges etc for the railways, the ambitious solar bid follows the grant of a mini-ratna status to it in January this year. It has chosen to use the new found autonomy to make a significant push into solar. Time will tell how prescient this move turns out to be. The firm had a turnover of Rs 764 crore in 2021-22, and profits of Rs 46 crores in 2021-22. The 500 MW tender win easily vaults it to the list of top PSU’s involved with installing solar capcities.