The Rajasthan government has issued a tender under Component A of the PM-KUSUM Scheme, inviting farmers to establish decentralized grid-connected solar power plants with capacities ranging from 0.5 MW to 2 MW. ​ The initiative aims to promote renewable energy while utilizing farmers’ land near 33/11 kV substations. ​ Notably, no government subsidies will be provided under this scheme. ​

Key Highlights of the Tender:

Eligibility: The tender is open to individual farmers, groups, cooperatives, and other entities. ​ No technical or financial qualifications are required, making it accessible to a wide range of participants. ​

Tariff Structure: The tariff is fixed at Rs. ​ 3.04 per kWh for 25 years without escalation. ​ In cases of multiple bids for a substation, the selection will be based on the lowest tariff offered, with Rs. ​ 3.04/kWh as the ceiling. ​

Fees and Securities: Applicants must pay a RISL fee of Rs. ​ 2,950, an application fee of Rs. ​ 5,000 per MW, and an Earnest Money Deposit (EMD) of Rs. ​ 1 lakh per MW. ​ For successful bidders, the EMD will be converted into a Performance Bank Guarantee (PBG) of Rs. ​ 1 lakh per MW, valid for 11 months from the Letter of Award (LoA). ​

Land Requirements: Each MW of capacity requires 1.5 to 2 hectares of land. ​ Lease rent ranges from Rs. ​ 80,000 to Rs. ​ 1,60,000 per hectare annually, with a 5% escalation every two years. ​

Project Timeline: Successful bidders must commission the project within nine months of receiving the LoA. ​

Power Purchase Agreement (PPA): A 25-year PPA will be signed with Rajasthan Urja Vikas Nigam Limited (RUVNL), extendable by mutual agreement. ​ Payment security will be ensured through a Letter of Credit and an Escrow Account. ​

Penalties: Failure to sign the PPA will result in forfeiture of the EMD/PBG. ​ Delayed commissioning will lead to proportional PBG encashment, and delays beyond two months will result in full PBG encashment and PPA cancellation. ​

Bidding and Submission Details:

The bid submission deadline is April 30, 2025, at 5:00 PM, with fee submission due by May 1, 2025, at 3:00 PM. ​ Bids will be opened on May 2, 2025, at 3:00 PM. ​ Submissions must be made via the e-Procurement Portal along with the required documents and fees. ​

Responsibilities of Solar Power Generators (SPGs): ​

SPGs will be responsible for land procurement, plant setup, operation, and maintenance for 25 years, ensuring a minimum Capacity Utilization Factor (CUF) of 17%. ​

This tender aligns with the Ministry of New and Renewable Energy (MNRE) guidelines and offers farmers an opportunity to contribute to the renewable energy sector while earning a steady income. ​

Refer the Tender Notice here