Karnataka Cooperative Milk Producers’ Federation (KMF) Issues Tender for 110 MW Solar Project

The Karnataka Cooperative Milk Producers’ Federation (KMF) has issued tenders for the implementation of a solar power project of the capacity of 110 MW. The development will take place in group captive mode.

As per the KMF tender, the last date for bid submission is February 24, 2023 and the bids will be opened on February 27, 2023.

KMF tender demarcates the scope of the work for design, finance, installation, and commissioning of the project. A successful bidder will also be required to do operation and maintenance (O&M) for 25 years.

KMF tender bars joint ventures from participating in the bidding process. KMF will give preference to bidders who possess experience in establishing a project in the state of Karnataka.

KMF tender document holds that the organisation looks to save 30-35% on its electricity bills through the development of this solar project.

Conditions For Bidders

KMF requires bidders to submit an earnest money deposit (EMD) of Rs 4.3 crore. The successful bidder shall furnish a security deposit equivalent to 7.8% of the contract price.

The notification also says that a bidder needs to have achieved a minimum financial turnover of Rs 270 crore in at least two of the last five financial years.

Bidders are required to have designed, developed, and installed solar power projects of 80 MW-100 MW.

The KMF document said that it will procure 80% of the contracted capacity from the power project set up by a special purpose vehicle annually. The procurement will be done for the entire 25 years of the PPA.

The solar power project capacity can also vary from 110 MW. KMF says that the award shall depend on member unions’ acceptance of the tariff. It will also depend on the expected savings from the open-access solar power project in the group captive mode. In case, the bulk milk chilling units are included in the scheme of things, the solar project size may rise to 115 MW or 185 MUS before the project is awarded.

Recently, IRCON Renewable Power (IRPL) had floated a tender for the supply of 500 MW of solar power projects at Pavagada in Karnataka. Previously, Karnataka Power Corporation Ltd. (KPCL) also floated a tender for the operation and maintenance of 1.15 MW floating solar power plant installed at YCCPP Raw Water Pond, Bengaluru.