As predicted by Headway Solar, India yesterday announced its RfS Document for 350 MW of solar under Phase I, Part II of JNNSM.
Background: The Mission has set a target of 20,000 MW and stipulates implementation and achievement of the target, in three phases (first phase upto 2012 to 13, second phase from 2013 to 2017 and third phase from 2017 to 2022) for various components including utility grid connected solar power. JNNSM recognizes that indigenous manufacturing capacity for solar power equipment is vital, if the goal of 20,000 MW of solar power is to be met by 2022. Therefore, it becomes necessary to introduce a criteria for ensuring domestic content for projects in the first phase.
Capacity: Project capacity shall be at least five MW (with a tolerance of + five percent) in case of solar PV projects and the maximum capacity of the project shall be up to 20 MW (with a tolerance of ± five percent). The plant capacity shall remain in multiples of five MW.
Conclusion: More flexibility for smaller and larger players to participate as per their investment plan.
RfS processing fees: Prospective bidders interested to participate in the bidding process are required to submit their RfS document along with a non-refundable processing fee of Rs.1.00 Lakh for each project.
Maximum participation by one company: The total capacity of solar PV projects to be allocated to a company including its parent, affiliate or ultimate parent-or any group company shall be limited to 50 MW.
Conclusion: Conglomerates will come together to bid as one entity to become more cost competitive.
Financial criteria: The Net Worth of the company should be equal to or greater than the value calculated at the rate of Rs 3 Crore or equivalent US$ per MW of the project capactiy up to 20 MW. For every MW additional capacity, beyond 20 MW, additional net worth of Rs. 2 crore would need to be demonstrated.
Domestic content: For crystalline, the cells as well as the panels must be made in India. Thin film can be imported.
Conclusion: Crystalline manufacturers will suffer rather than flourish as developers will go for thin film.
Foreign investment: Foreign entities can participate on their own, but will have to form an Indian company if they are a successful bidder.
Conclusion: Foreign investment seems like a good opportunity but foreign companies will need some kind of Indian partnership to successfully execute projects. Consultants can cash in on this.
Cost of grid connectivity: The grid connectivity may be done by the developer or the developer may ask the STU to do the wheeling. In any case, the charges are to be borne by the developer. The developer may share an existing transmission line.
Land: At least two hectares of land must be in clear possession with the developer. The developer may have a lease for 30 years from any state or central Agency Rest of the details remain similar to previous bidding. The last date for submission of RfS is 30 Days from the date of issue of RfS , i.e. August 24, 2011.
