Punjab Rolls Out 1 GW Solar Tender With Flexible Land, Partial Power Supply Option

Punjab State Power Corporation Ltd (PSPCL) has recently issued a 1 GW solar tender, allowing projects to be set up anywhere in Punjab on land identified and purchased or taken on lease by the bidder. The utility has invited bids until April 1, 2026.

Punjab has also set a ceiling tariff of Rs. 3.10/kWh. Any bid quoting a tariff above this level will be treated as disqualified and will not be eligible for participation in the reverse auction process.

Under the scope of work, the tender allows partial commencement of power supply from the project, subject to acceptance by PSPCL. The minimum capacity eligible for acceptance of the first tranche shall be 50% of the project capacity, subject to a minimum of 1 MW for all projects. This provision is without prejudice to the imposition of penalties, in accordance with the terms of the power purchase agreement (PPA), on the portion of the project that has not yet commenced the supply of power.

Scope of Work

The bidder shall set up the solar project, including the transmission network up to the Delivery Point, at its own cost. All approvals, permits and clearances required for setting up the project—including connectivity and land registration—as well as those required from State and Central governments and local bodies, shall fall within the scope of the successful bidder.

The tender specifies that the project may use technology-agnostic solar solutions, including crystalline silicon or thin-film technologies, with or without trackers.

The performance bank guarantees (PBGs) shall be valid for a period of six months from the Scheduled Commencement of Supply Date (SCSD) of the project, with a claim period of up to seven months from the SCSD. The PBGs (or alternatives provided thereto) shall be returned to the successful bidders within 45 days of the successful commencement of power supply from the full project capacity, or the capacity finally accepted by PSPCL, in accordance with the terms of the PPA.

The bidder, or its affiliate, parent or ultimate parent, is required to have a net worth of not less than INR 50 lakh per MW of the quoted capacity. The net worth may be assessed as on the last date of the previous financial year (FY 2024–25 or FY 2023–24), or as on a date not more than seven days prior to the bid submission deadline. The computation of net worth would be based on the unconsolidated audited annual accounts of the bidder.

Guarantees Via EMD and Performance Guarantee

The bidder would provide the following guarantees to PSPCL in a phased manner. Bidders are required to submit an Earnest Money Deposit (EMD) of Rs. 4 lakh per MW in the form of a bank guarantee along with the bid.

A Performance Guarantee (PG) of Rs. 10 lakh per MW is to be submitted in the form of a bank guarantee after the issuance of the Letter of Intent (LoI) and prior to the signing of the PPA.

Participation charges for the e-Reverse Auction event, amounting to Rs. 15,000 (plus GST), are payable directly to the ETS Service Provider. The fee must be paid online through the Bharat Electronic Tender portal by all bidders wishing to participate in the e-Reverse Auction.