MNRE Invites Suggestions for Centralised Tendering of 4.5 Lakh Solar Pumps Under KUSUM Scheme

MNRE has invited suggestions for centralised tendering for the current year target of 4.5 lakh standalone solar pumps under the KUSUM Scheme.

The Ministry of New and Renewable Energy (MNRE) in a new notification has proposed to soon initiate the centralised tendering process for the current year target of 4.5 lakh standalone solar pumps under the Component B of the PM-KUSUM Scheme. In line with this, it has also invited comments and suggestions from industry stakeholders on the tendering process.

The MNRE stated that suggestions have been invited on issues like eligibility for participation in the tender, technical and financial requirements, number of vendors to be empaneled for each category, cluster wise bidding, the minimum capacity to be allocated to the lowest bidder, provisions for MSMEs, etc.

This has been done because in the first year, for the target of installation of 1.75 lakh solar pumps, centralised tendering was conducted by EESL and the installations for the projects are currently under progress. However, during the implementation of the first year target the Ministry claims that it had received certain feedbacks on issues being faced by the vendors/ implementing agencies and those are being examined for suitable incorporating in the implementation process for the current year target.

The last date for submission of comments and suggestions on the above (but not limited to) issues is September 30, 2020. After which the ministry will begin work on formalising the tendering process for the current year targets.

Earlier this month, the ministry had issued clarifications on certain issues relating to the implementation of the PM-KUSUM Scheme. According to the Ministry, the clarifications have been sought by a few State Implementing Agencies.

It was cleared that for Component-B and Component-C, the state share of subsidy shall be a minimum 30 percent of the applicable MNRE benchmark cost or cost discovered through tender, whichever is lower. The states are free to provide a higher share of subsidy to reduce the beneficiary farmer contribution, however, the central financial assistance (CFA) would be limited to 30 percent of the applicable MNRE benchmark cost or cost discovered through tender, whichever is lower for pump capacity up to 7.5 HP.

It was also stated that under Component-C, there is no CFA for the replacement of the existing less efficient grid-connected agriculture pump with an energy-efficient agriculture pump, however, the states are free to provide additional financial support for the replacement of existing pumps with energy-efficient pumps.