MSEDCL Petition to Float Open Tenders Under MSKVY Partly Approved by MERC

MERC has allowed MSEDCL to proceed with the continuous bidding process for the selection of bidders under MSKVY.

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) has been at the doors of the Maharashtra Electricity Regulatory Commission (MERC) to seek approval to float Open tenders and taking land on lease by paying rent under Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) Scheme.

In the first petition filed in October, the commission had stated that it acknowledged the proactive proposal of MSEDCL to accelerate the bidding process under MSKVY and that it is principally inclined towards the proposal of MSEDCL to conduct Open Tender i.e. continuous re-biding till targeted capacity is fulfilled, for procurement of solar power under MSKVY.

However, the Commission postulated that there may be certain operational challenges that need to be addressed while inviting the bids on a monthly basis. And had thus, directed the agency to make necessary changes in the RfS document to address the issues listed by the commission and submit a fresh petition for approval of the commission.

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In its new petition, filed in response to the commission’s order. MSEDCL made the following prayers:

a) To allow MSEDCL to float the Tenders under Mukhyamantri Saur Krishi Vahini Yojana with the deviation in Guidelines for Development of Decentralised Solar Power Plants dated 13.12.2019 in regards to Minimum CUF from 15 percent to 19 percent. 

b) To initiate the tendering process without the provisions of lands with the ceiling Tariff of Rs. 3.30 per unit, till the online web land portal will be operational and land bank is available with MSEDCL in portal. 

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c) To approve the formula/methodology for per unit impact as mentioned in the Petition 

d) To approve the tender documents i.e. RFS and Draft PPA submitted as a part of this Petition

It further stated that in compliance with the Commission’s Order, it had prepared the tender documents i.e. RfS and draft PPA considering the directions of the Commission. Furthermore, it has stated that it will incorporate any recent amendments in bidding guidelines in the subsequent upcoming tender. And that it will come before the Commission for approval of any deviations from the Guidelines. 

The commission further noted that regarding inviting EOI, MSEDCL has submitted that it will be inviting tenders of different capacities for different circles/districts which will be based on their agriculture loads. It has also highlighted that based on its experience the EOI mode may not give the desired results and will also consume time. The Commission noted MSEDCL’s submission. 

The Commission had suggested this approach so as to have more competition amongst the prospective bidders. However, considering practical difficulties and MSEDCL’s intent to complete the bidding process as early as is possible, and further MSEDCL’s assurance that cartelisation would not happen, the Commission has allowed MSEDCL to go for a direct bidding process instead of inviting EoI first and ascertaining capacity to be bidded. Further, the Commission is of the view that after realising certain practical experience of inviting Open Tenders under MSKVY, if required, MSEDCL may consider exploring the option of inviting EOI. 

Thus, after considering all the prayers and amendments made by MSEDCL, the commission has partly allowed the petition filed and asked MSEDCL to make changes in bid document as directed. 

And further stated that subject to changes suggested to be incorporated in bid documents, MSEDCL is allowed to proceed with the continuous bidding process for selection of bidder under Mukhyamantri Saur Krishi Vahini Yojana.

For the complete order click here. MSEDCL MERC