IREDA Extends Bid Date For 12 GW CPSU Solar Scheme

Indian Renewable Energy Development Agency Ltd. (IREDA), the implementing agency appointed by  Ministry of New & Renewable Energy (MNRE) for the CPSU Scheme Phase II  has extended the bid submission date to 15th June.

The Central Public Sector Undertaking (CPSU) scheme phase-II envisages setting up 12,000 MW grid-connected solar projects with viability gap funding (VGF). The previous last date to submit the bids was 30th May. A VGF is provided to cover the cost difference between domestic and imported solar cells and modules. VGF will be released in two tranches.

Now the CPSUs interested in solar based sourcing of electricity are required to submit their responses by 15th June 2021 and the successful bidders will be selected by 20th July.

Under the scheme, the power produced by the government producers can be used on payment of mutually agreed usage charges of not more than Rs. 2.45/unit for self-use or use by Govt./ Govt. entities, either directly or through DISCOMS. The maximum permissible VGF is Rs. 55 lakh per megawatt. The actual VGF to the Govt producer will be decided through bidding process using the VGF amount as a bid parameter to select the project developer.

The MNRE has kept the option of reducing the VGF, or even the upper limit for power costs, depending on market inputs that it receives.

IREDA had invited proposals on 29th January this year for setting up of Grid (including Mini & Micro Grid) Connected Solar PV projects anywhere in the country. This is to be done on “Build Own Operate” (B-O-O) basis for an aggregate capacity of 5,000 MW under Phase-II (Tranche-III).

The 12 GW CPSU scheme has suffered from multiple issues, starting from a poor understanding of many CPSU’s that led to the appointment of IREDA as a single implementing agency. Availability of domestically produced cells for Modules has also become an issue, as domestic production has simply not been enough.