CIL Issues ₹1,217 Crore Tender For 300 MW Solar PV Plant In Gujarat As Part Of Renewable Energy Strategy

Coal India Limited (CIL) has issued a tender for borrowing a Rupee Term Loan of ₹1,217 crore to finance the establishment of a 300 MW ground-mounted solar photovoltaic (PV) plant in the GIPCL Solar Park at Khavda, Gujarat. This project is part of CIL’s strategy to diversify its energy portfolio and contribute to renewable energy development. The tender was released on January 27, 2025, with key milestones set for the bidding process.

The tender follows a two-bid system: the Techno-Commercial Bid (Cover I) and the Price Bid (Cover II). The tender document became available on January 27, 2025, at 6:15 PM, and the deadline for submission is February 19, 2025, by 5:00 PM. Queries from potential bidders are entertained until February 4, 2025, with a pre-bid conference scheduled for February 3, 2025. The opening of the Techno-Commercial Bids is set for February 20, 2025, at 11:00 AM.

Notably, the project’s capital cost is estimated at ₹1,520.90 crore, with an 80:20 debt-equity financing structure. CIL plans to repay the loan in 40 equal quarterly installments over 11 years, starting from the commercial operation date (COD), which is scheduled for November 30, 2025. The project is significant for its capacity to generate 735.84 million units of electricity annually, contributing to CIL’s renewable energy targets.

The plant will be located on plots 3, 4, and 5 in the GIPCL Solar Park, each covering 450 acres. CIL has entered into multiple agreements to facilitate the project, including a Power Purchase Agreement with GUVNL on June 28, 2024, and land lease and implementation agreements in December 2024.

CIL has outlined that no earnest money deposit (EMD) or processing fees are required for participation in this tender. Additionally, there are no prepayment charges for the loan, provided a 30-day notice is given. The rate of interest for the loan will be determined based on the lowest net interest rate, considering both the reference rate and any fixed spread proposed by bidders. These conditions reflect CIL’s efforts to make the bidding process transparent and competitive.

Bidders must meet specific eligibility criteria, including a minimum net worth of ₹500 crore as of March 31, 2024, and must provide relevant financial and statutory documentation. CIL reserves the right to accept or reject any bids and modify the scope or timeline of the tender as needed.

This tender is part of CIL’s broader strategy to integrate renewable energy into its operations, aligning with government priorities on sustainable development and reducing carbon emissions.