Empowering Agriculture: MSEDCL’s Role In Expediting Solar Power Under Maharashtra’s Mukhyamantri Saur Krushi Vahini Yojana 2.0

Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) has recently filed a petition seeking approval for deviations in the Standard Bidding Document (SBD) for the long-term procurement of solar power. The aim is to meet the Solar Renewable Purchase Obligations and supply daytime power to farmers under the Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) 2.0 through a competitive bidding process. The petition was filed on February 17, 2024.

The government of Maharashtra has launched the Mukhyamantri Saur Krushi Vahini Yojana 2.0 to provide daytime electricity to agricultural consumers through decentralized solar power projects. Under this scheme, at least 30% of agricultural feeders are proposed to be solarised by December 2025. To achieve this, Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) is considering developing multiple units corresponding to identified substations.

MSEDCL aims to implement a ceiling tariff of ₹3.10 per kWh for these projects, both at the substation level and aggregated at the project level. The successful bidder will be selected based on the lowest quoted fixed tariff for each unit. The goal is to ensure competitive tariffs and speedy implementation of projects under MSKVY 2.0.

Prospective bidders are encouraged to avail benefits under the Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan (PM KUSUM) Scheme and MSKVY 2.0 guidelines. The Ministry for New and Renewable Energy (MNRE) has issued comprehensive guidelines for the implementation of the PM KUSUM Scheme to facilitate this.

In response to the tenders floated by Maharashtra State Electricity Distribution Company Ltd. (MSEDCL), several concerns have been raised by prospective bidders. These include stringent technical eligibility criteria, tight timelines for commissioning, difficulties in demonstrating minimum capacity utilization factor (CUF), and challenges in conducting feasibility studies and obtaining right of way for transmission lines.

To address these concerns and ensure favorable tariffs, Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) has prepared tender documents with deviations from the standard bidding documents published by the MNRE. These deviations aim to promote competition, receive bids for larger quantities of solar power, and discover lower tariffs.

Despite these deviations, the tendering process has received positive responses from bidders. Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) has received bids for about 2,299 MW of solar power. Encouraged by this response, they have decided to cancel the cluster tender process and re-float tenders for aggregated capacities.

Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) is seeking approval for deviations in the bidding process to accelerate the implementation of solar power projects under the Mukhyamantri Saur Krushi Vahini Yojana 2.0. These deviations aim to ensure competitive tariffs, address the concerns of prospective bidders, and facilitate the solarization of agricultural feeders in Maharashtra.

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