According to the reporting by various renewable energy news outlets, Solar Energy Corporation of India (SECI) has launched a tender for 1,680MW of PV modules under the domestic content requirement (DCR) category. The tender is divided into four packages. Each package amounts to 420MWDC. Bidders are allowed to quote up to two packages. As mentioned, modules have to be made in India. This requirement is applicable to the PV cells in the modules as well. All in all, the products that bidders will be offering must be on the Approved List of Models and Manufacturers compiled by India’s Ministry of New and Renewable Energy. Furthermore, modules must be based on either a mono-Si cell technology or a thin-film cell technology. SECI formally released the bid invitation on June 29. The bidding window will open at 2:00pm this July 29 and closes at 4:00pm on the same day.
In addition to submitting the bid application, bidders will have to pay a tender processing fee and an earnest money deposit. The tender processing fee is INR 25,000 (USD 316) and is non-refundable. The earnest money deposit is INR 190 million (USD 2.4 million) for one package and INR 380 million (USD 4.8 million) for two packages. Also, successful bidders will have to pay 3% of the contract value amount as performance security after they have received the formal purchase order.
SECI reserves the right to add or reduce 10% of the awarded module capacity on the same price, terms, and conditions of the contract. Moreover, successful bidders are obligated to provide an additional 0.5% of the awarded module capacity as spare. Successful bidders will have to deliver the awarded module capacity within 16 months from the date when the purchase order is placed.
Eligibility requirements fall under three categories: production capacity, sales revenue performance of the previous three financial years (ending on March 31, 2022), and working capital. Regarding production capacity, bidders that will quote for one package must have an annual production capacity of at least 560MW that is either operational or under development. Bidders that will quote for two packages must have an annual production capacity of at least 1,120MW that is either operational or under development.
In terms of sales revenue performance for the three previous financial years, bidders that will quote for one package must have an average annual amount of at least INR 3.8 billion (USD48.08 million). Bidders that will quote for two packages must have an average annual amount of at least INR 7.6 billion (USD 96.16 million). Furthermore, bidders must post a positive net worth for the previous financial year.
Turning to working capital, bidders that quote for one package need to have at least INR 2.38 billion (USD 30.1 million). Bidders that quote for two packages need to have twice that amount. If bidders fall short of this requirement, they can obtain a letter from a bank stating that have a sufficient net worth (INR 5 billion for bidders quoting for one package and twice that for bidders quoting for two packages) as well as a line of credit (INR 2.38 billion for bidders quoting for one package and twice that for bidders quoting for two packages).
SECI’s website states that the Indian government aims to install 450GW of renewable generation capacity by 2030. As a government-run entity, SECI is currently releasing several major tenders for PV generation capacity and PV product manufacturing capacity.
