BHEL seeks bids for 5 MW Solar Project in Haridwar

Responsibilities encompass the entire project life cycle, from development and construction to synchronisation, commissioning, operation, and maintenance. Additionally, the bidder must establish the evacuation network up to the BHEL substation.

The chosen contractor is required to enter into a 25-year power purchase agreement (PPA) with BHEL. Interested parties must submit their bids by February 6, 2024, with bid openings scheduled for the same day.

Prospective bidders are obligated to furnish an earnest money deposit of Rs 3 million (~$36,087). Upon successful bidding, the selected party must provide a performance bank guarantee (PBG) of Rs 12.85 million (~$154,569) before PPA signing or within 21 days of receiving the letter of intent, whichever comes first.

Project commissioning must occur within six months of the effective PPA date, with no provision for partial commissioning. A delay of up to one month will trigger the encashment of a partial PBG of Rs 3 million (~$36,087), calculated on a per-day basis. Delays beyond one month and up to three months will result in the remaining PBG of Rs 9.85 million (~$118,482) being encashed.

The declared annual Capacity Utilisation Factor (CUF) must not fall below the specified CUF for each year according to BHEL's tender.

Excess power generated by the project will be directly sold to BHEL, which retains the right to sell or use surplus power at its discretion.

Bidders must have a track record of establishing ground-mounted solar power projects with capacities not less than 2.5 MW, including individual projects of at least 1 MW. Operational and maintenance experience of solar projects with a minimum capacity of 2.5 MW over the past seven financial years is mandatory, and these projects must have been commissioned and operational for at least one year.

Applicants are required to have a net worth equal to or greater than Rs 51.4 million (~$618,268) as of the last date of the financial year 2022-23.

Financial stability must be demonstrated through either a minimum annual average turnover of Rs 102.8 million (~$1.24 million) over the last three financial years or an in-principle sanction letter from lending institutions committing a line of credit of at least Rs 64.3 million (~$773,448) to meet the project's working capital requirements.

In a separate initiative in September 2023, BHEL invited bids to secure 90 million units (MUs) of round-the-clock renewable power annually on a long-term basis. The procured power is intended for supply to the ex-bus periphery at company units in Haridwar (54 MUs), Bhopal (12 MUs), Trichy (12 MUs), and Hyderabad (12 MUs) on a long-term basis.