Bihar Seeks Bids For 564 MW Solar Projects Under PM KUSUM

Component C of the PMKUSUM scheme, which seeks grid connected solar pumps as part of the same (Component B is off grid pumps and Component A is ground mounted  solar ), is in the limelight in Bihar. Bihar State Power Generation Company (BSPGCL) has invited bids for 564 MW of projects under the scheme, in the regions serviced by South, and North Bihar Power Distribution companies.

the last date for bids is April 5. Interestingly, BSPGCL has estimated the cost per MW at Rs 3.5 crores, which might be considered on the lower side by many potential bidders. The EMD for bidders has been set at Rs 1 lac per MW, besides a Performance Bank Guarantee of the same amount.

Under the scheme, developers will receive 30% central financial assistance on the project cost, with the state government chipping in with an additional Rs 45 lacs per MW.

PMKUSUM projects come with strict DCR (Domestic Content Requirement) rules for modules used, and will require a certification or authorisation for the cells used in the production of the modules used.

Winning bidders will have to set up their projects within 18 months of allotment, along with an 11 kV transmission line to connect projects with the nearest sub-stations.  Land for the projects is also their responsibility.

The relevant discoms will enter into a 25 year PPA with each developer.

PMKUSUM’s component C, besides Component A as well, has struggled to deliver on targets, largely due to the difficulty for developers in aggregating farmers and land for projects, besides what many consider unremunerative returns.  The central government has made a fresh effort in the past few months to improve the situation by streamlining processes, building awareness as well as pushing for a bigger effort from discoms as well.