The Ministry of New & Renewable Energy (MNRE) recently issued an order on Amendment to the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects.
Some of the amendments are successful bidder, if being a single company, shall ensure that its shareholding in the SPV/project company executing the PPA shall not fall below 51% at any time prior to 3 years from the COD), except with the prior approval of the Procurer. In the event the successful bidder is a consortium, then the combined shareholding of the consortium members in the SPV/project company executing the PPA, shall not fall below 51% at any time prior to 3 years from the COD, except with the prior approval of the Procurer. Further, the successful bidder shall ensure that its promoters shall not cede control2 of the bidding company/consortium till 3 (three) years from the COD, except with the prior approval of the Procurer. In this case it shall also be essential that the successful bidder shall provide the information about its promoters and their shareholding to the Procurer before signing of the PPA with Procurer.
Quantum of the Earnest Money Deposit (EMD) in the form of a bank guarantee/ letter of undertaking to pay/ Payment of Order Instrument, to be furnished by the bidders. The EMD shall stand forfeited in the event of failure of the Solar Power Generator to execute the PPA within the stipulated time period.
Earnest Money Deposit (EMD), to be fixed by the Procurer, [but not to be more than 2% (two per cent) of the estimated capital cost of the Solar PV power project cost, as determined by CERC, if any, for the financial year in which the bids are invited or the estimated project cost], to be submitted along with response to RfS, in the form of: (a) Bank Guarantee(s); OR (b) “Payment on Order instrument” / Letter of Undertaking, to pay in case situation of default of solar power generator in terms of tender condition arises, from Indian Renewable Energy Development Agency (IREDA)/ Power Finance Corporation Limited (PFC)/ REC Limited (REC).
To know more about the amendments refer to the document below: