We present here highlights of the recently announced 1200 MW of solar power plant plans across 60 taluks in Karnataka.

For those who wish to see the references, here they are:

• The Original Notification
• The RFP
• A PPA template

Overall

• Minimum – 3 MW per Taluk
• Maximum – 20 MW per Taluk
• 55 Taluks for Solar Plants and 5 Taluks for Module Manufacturing units
• Bidder can be single business entity (formed using SPV) or a consortium of entities
• Partnership firms can’t participate in the bidding
• Bidder can submit only 1 bid for 1 Taluk
• Location of project can be changed but only within the taluk

Eligibility Criteria

• Technical Capacity:
  • Must deploy Solar PV Technology approved by MNRE i.e, crystalline silicon, Thin film and Concentrator PV modules
  • Bidder proposing more than 20 MW must show technical experience of installing solar plants prior to this. (Technical Experience)
  • The Bidder is required to undertake to furnish evidence of meeting the Technical Capacity.
• Financial Capacity:
  • Minimum Net worth of Rs.2 Crore per MW as on Mar 31, 2015
  • The net worth shall be calculated using the following formula only based on the audited annual accounts.
    Net Worth = Paid up Equity share capital + Free Reserves – Revaluation Reserves – Intangible Assets – Miscellaneous Expenditures to the extent not written off and carry forward losses.

Note on Financial Capacity:
a) Paid-up share capital will include:
1. Paid-up equity share capital and
2. Fully, compulsorily and mandatorily convertible Preference Shares and
3. Fully, compulsorily and mandatorily convertible Debentures.

b) Share premium will form an integral part of Net Worth provided it is realized in cash or cash equivalents. However, this condition will not apply in case of listed companies.

(Illustration :If the proposed cumulative capacity is 50 MW i.e., project 1 for 10 MW, project 2 for 20 MW and project 3 for 20 MW, the net worth shall be not less than INR 100 Cr (Rupees hundred crore) or equivalent US$ as on March 31, 2015)

Bidding Documents Required

KREDL will treat the bid as responsive only if following documents are furnished:

• RFP in the specified format
• Copy of Certificate of Incorporation and a Copy of Memorandum and Articles of Association
  of the Bidder
• Copies of Bidder’s or each Consortium Member’s duly audited annual reports and financial
  statements (balance sheets and profit and loss account) for the financial year 2013-14;
• A copy of the PPA with each page initialled by the Authorized Signatory of the Bid

Bidding Process

• Single stage process
• Through e-procurement platform of Govt of Karnataka – eproc.karnataka.gov.in
• Bid Security = Online Deposit + Bank Guarantee
• Online Deposit – Bidders are required to deposit Rs.10 lac while bidding through e-payment options (Credit/debit card or Net Banking or remittance/RTGS)
• Bank Guarantee = (Rs. 10 lac/MW) – (Online Deposit amount-10 lac)

Selection of Bidder (Step-by-Step Process)

1. The Financial Bid of the Bidders adjudged as responsive and who meet the Eligibility Criteria shall be opened.
2. Effective Tariff to be paid by ESCOMS under each of the Bids would be determined.
3. The Bidders offering the lowest Effective Tariff payable by ESCOMS will be selected first and so on till the aggregate capacity of 20 MW per Taluk is reached
4. Where the Effective Tariff offered by two or more Bidders are same, then the Bidder proposing higher capacity would be given priority in the selection.
5. In the event that the Selected Bidder(s) withdraws or is not selected for any reason in the first instance, KREDL may shortlist the remaining Bidders in the order of lowest Effective Tariff, in order to meet the total aggregate capacity of 1,200 MW.
6. After selection, a letter of award (LOA) shall be issued by KREDL and the bidder shall acknowledge the LOA in 7 days.
7. After acknowledgement of the LOA and Allotment Letter, the Selected Bidder shall execute the PPA within 30 (thirty) days of such acknowledgement

Financial Closure

The Selected Bidder within 365 (three Hundred and Sixty five) days from the date of signing of the PPA shall

1. Achieve Financial Closure
2. Furnish documentary evidence that the requisite technical criteria has been fulfilled
3. Submit Documentary evidence for the required land for project development

Project Commissioning

The commercial operation date (COD) for the Project shall be achieved by the Developer within 18 (eighteen) months from the date of signing of the PPA.

Tentative timeframe/schedule

1. Last date for receiving queries December 02, 2015, 1730 Hrs

2. Pre-Bid Conference December 03, 2015, 1430 Hrs

3. Bid Due Date January 04, 2016, 1630 Hrs

4. Due Date for submission cost of RFP, application fee (DDs) January 07, 2016, 1630 Hrs

5. Due Date for submission of original Bank Guarantees towards Bid Security January 07, 2016, 1630 Hrs

6. Opening of Bid (except Financial Bid) January 08, 2016, 1130 Hrs

7. Opening of Financial Bid To be intimated later

8. Bid Validity Period 180 days from Bid Due Date

List of Taluks

For Power Plants

For module manufacturing

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