NLC India Issues Global Tender For 250 MW/500 MWh Battery Energy Storage System In Tamil Nadu

NLC India Limited (NLCIL), a prominent Navratna enterprise under the Government of India, has launched an international competitive bidding process for the development of a large-scale Battery Energy Storage System (BESS) project with a capacity of 250 MW/500 MWh. The project is planned to be executed in a complete Engineering, Procurement, and Construction (EPC) mode, excluding the supply of power transformers. The initiative is being implemented on behalf of NLC India Renewables Limited (NIRL), a wholly-owned subsidiary of NLCIL, as part of its ongoing efforts to expand renewable energy infrastructure and integrate energy storage solutions in India.

The project entails the design, engineering, manufacturing, and commissioning of the BESS at three substations located in Tamil Nadu, specifically Ottapidaram SS, Annupankulam SS, and Kayathar SS. Beyond the construction phase, the selected bidder will be responsible for comprehensive operation and maintenance (O&M) of the system for a period of 12 years from the date of achieving Commercial Operation Declaration (COD). The scope also includes the development of evacuation bays and associated transmission lines to ensure seamless integration of the energy storage system with the grid. The project timeline is ambitious, with completion scheduled within 12 months from the date of issuance of the Letter of Award (LOA).

The tender outlines specific technical eligibility criteria for prospective bidders. These requirements can be met through various routes, reflecting the diverse expertise available in the renewable energy sector. Bidders may qualify through experience in manufacturing battery systems, installing grid-interactive BESS, or undertaking large-scale solar or wind power projects. For example, one of the criteria specifies that bidders should have manufactured and supplied batteries with a cumulative capacity of at least 80MWh, demonstrating relevant experience in large energy storage deployments.

Financial and procedural details are clearly defined in the tender documents. The tender requires a non-refundable cost of ₹20,000, equivalent to approximately US $225 or Euro 190. An Earnest Money Deposit (Bid Guarantee) of ₹6,73,28,000 (US $7,43,800 / Euro 6,26,850) is required from bidders to ensure commitment and seriousness in participation. The successful bidder must also furnish a Contract Performance Bank Guarantee (CPG) equal to 10% of the total contract value, excluding the comprehensive O&M price, within 30 days of receiving the LOA, ensuring financial and technical accountability throughout the project execution.

The tender process is structured to facilitate clarity and transparency. A pre-bid meeting is scheduled for January 20, 2026, at 11:00 AM (IST) via video conference, allowing prospective bidders to seek clarifications and understand project requirements in detail. The deadline for online submission of bids, including Part-I and Part-II, along with physical covers, is set for January 30, 2026, at 2:30 PM (IST), while the opening of Part-I and physical bid covers is planned for the same day at 3:00 PM (IST). Interested parties can access tender documents and submit bids through the official NLC India website or the Central Public Procurement Portal.

The contract has been designated as a “Works Contract,” which implies that certain procurement preferences, such as those available to Micro and Small Enterprises (MSEs), and reverse auctions, will not be applicable in this case. This project represents a significant step by NLCIL and NIRL towards strengthening the energy storage infrastructure in India, supporting grid stability, and enabling higher integration of renewable energy sources. The 250MW/500MWh BESS project, once operational, is expected to contribute substantially to the state of Tamil Nadu’s energy ecosystem and serve as a model for large-scale energy storage deployment in the country.

The initiative reflects NLCIL’s ongoing commitment to modernizing India’s power sector and promoting sustainable energy solutions. By inviting international competitive bids, the company aims to leverage global expertise in battery energy storage technology while ensuring timely project delivery and long-term operational efficiency. The BESS project is likely to play a pivotal role in balancing power demand, enhancing grid reliability, and supporting India’s broader renewable energy transition.