Two O&M Tenders for 40 MW of Solar By BHEL

Bharat Heavy Electricals Limited (BHEL), one of the power sector PSU’s that is increasingly being used as a vehicle to meet manufacturing as well as other objectives in the renewable energy space, has floated two more O&M tenders for solar projects.

The first project on offer is the 10 MW solar power project at Charanka in Gujarat for a period of ten years.  Interested bidders will have to submit an amount of ₹662,000 as the earnest money deposit (EMD) for the bid. The estimated cost of the O&M contract for the 10 MW solar project is ₹33.06 million.

The second tender is for Singareni Collieries Company Limited’s (SCCL) 30 MW solar project located at Manuguru in Telangana for 123 months. This had earlier been tendered in July this year, when the response was poor or unacceptable to BHEL. In this tender, bidders will have to submit an amount of ₹1.28 million as the EMD. The estimated cost of the project is ₹63.89 million. For both these projects, the last date to submit the bids is October 30, 2020.

Conditions for both the tenders include experience with similar projects in the last seven years. The bidder should have completed three similar works costing not less than 40% of the estimated cost, or two similar projects costing not less than the amount equal to 50% of the estimated cost, or one similar project costing not less than 80% of the estimated value.

For the financial criteria, the average annual financial turnover during the previous three financial years should be 30% of the estimated value.  According to the tender document, the successful bidder will have to submit 5% of the work order amount as the security deposit.

For a lot of EPC and O&M players, the O&M space has become a much more dependable and predictable revenue stream in recent months, as volatility in the broader solar market has hit home. Firms like Sterling and Wilson Solar, for instance, have highlighted their success in winning large O&M contracts and the steady income from those, as one way they are smoothening out their revenue streams .