MP Jal Nigam Floats Tender For 100 MW Captive Solar Project In Madhya Pradesh

Madhya Pradesh Jal Nigam (MPJN) has invited proposals for the development of a 100 MW grid-connected ground-mounted solar photovoltaic (PV) project under captive mode. This initiative is aimed at meeting the power requirements for various water pumping and treatment plants operated by MPJN across the state. The project will be developed on a single contiguous land parcel, with the possibility of bidders acquiring adjoining private land if necessary to complete the site area.

The solar power generated will be utilized for captive consumption by MPJN, and the project will be executed through a Project Company formed between MPJN and the selected bidder, with equity sharing in a 74:26 ratio. The Power Supply and Offtake Agreement (PSOA) will be valid for 25 years from the commercial operation date (COD).

The selection process includes a single-stage two-part bid system followed by a reverse auction. Bidders will first undergo a qualification assessment, and those meeting the eligibility and financial capacity criteria will proceed to the financial bidding and reverse auction phase.

To participate in the bid, each bidder must submit an Earnest Money Deposit (EMD) of ₹5,000,000 (₹ Fifty Lakh), which must be paid online through the e-procurement portal. The successful bidder will be required to furnish a Performance Bank Guarantee (PBG) of ₹200,000,000 (₹ Twenty Crore) for the construction phase. Additionally, for the operation and maintenance (O&M) phase, the PBG amount will be 5% of the expected units generated at 19% CUF over three years, multiplied by the quoted tariff.

Performance securities can be submitted in various forms: Electronic Bank Guarantee (eBG), a letter of undertaking as a Payment on Order Instrument (POI) from designated institutions (IREDA, PFC, or REC), or an Insurance Surety Bond from an IRDAI-approved insurer. These securities must be issued in favor of the Managing Director, MPJN.

MPJN will invest ₹31.20 crore as its 26% equity in the Project Company, to be released in tranches linked to project milestones, such as SPV formation, foundation completion, module supply, and CEIG approval. The project developer will be responsible for design, engineering, supply, construction, commissioning, operation, and maintenance of the solar PV plant, including all grid integration work and compliance with regulations for energy scheduling and banking.

Failure to provide required documents or meet eligibility criteria will lead to bid rejection. The PSOA includes performance guarantees, requiring a minimum of 90% of the annual guaranteed energy (equivalent to 19% CUF) over five consecutive years. Failure to meet this threshold may result in termination of the agreement.