MNRE EoI For Establishment Of Three Power And RE Equipment Hubs

MNRE Notification

The Union Ministries of Power and New and Renewable Energy have jointly proposed a Rs 1000 crore worth scheme inviting the companies for establishment of three manufacturing zones in the country by 2026-27, two in a brownfield on already developed land and one greenfield manufacturing zone in a coastal area of the country.

The details of the expression of interest (EoI) published by the ministries, and the responses to the queries at the pre-bid meeting that have been uploaded, can be checked here. The scheme is part of the government’s efforts to cut down on import reliance and build domestic capacity of critical equipment, components and spares required for the power sector and renewable energy sector. Besides the private companies, State Government or State Government entity/State PSU in partnership with State Government can submit proposal for setting up manufacturing zone in their State, according to the steering committee and a ‘project management agency’ formed to shortlist the applications from the prospective companies.

This is a Central Sector Scheme and the duration of the Scheme is five years from FY 2022-23 to FY 2026-27. The last date for submission of Expression of Interest is 8th June 2022.

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Brief description of EOI Process:

EOI Process Authority has adopted a single stage EOI Process for selection of the Successful Proposer. Each Proposer is required to submit a single Proposal. All Proposals are required to be prepared and submitted in accordance with the terms of this EOI on or before Proposal Due Date. Any queries or requests for additional information relating to this EOI shall be submitted to EOI Process Authority in accordance. EOI Process Authority shall endeavor to adhere to the following EOI Schedule:

The EoI reads further, “India is largely reliant on imports to meet its growing domestic demand of power and renewable energy equipment and this trend is likely to continue unless domestic capacity is ramped up with suitable policy support. The target of 450 Gw of renewable energy capacity offers a tremendous opportunity to create skilled jobs, bring about technology transfer, and contribute to the make-in-India campaign, in addition to reducing the country’s trade deficit and reliance on imports,”.

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More importantly, the zones will cut down the infamous red tape and serve as single window to provide hassle-free allotment of land and clearances, common testing facility, and common infrastructure facility. The only condition a prospective private company needs to fulfil is possession of land and state-level clearances. The project land should have assured availability of power, water, and transport connectivity and the identified location would also need to be away from the eco-sensitive zone of protected areas.

To a specific query from a private company, the committee clarified, “The scheme allows private companies to join hands with a state government and apply for the project, given the state holds 26 per cent stake in the joint venture. The financial grant earmarked for the scheme would be disbursed in tranches over five years in line with the completion of the projects.” The committee also clarified that the private entities can exit from the project after manufacturing units are set up in at least 50% of the area earmarked for setting up of manufacturing units or 10 years after the award, whichever is earlier.