Clean Energy Momentum: Singareni Collieries’ 232 MW Solar Ventures in Telangana

Posted On - 12 September, 2023 • By - King Stubb & Kasiva

Introduction

Singareni Collieries Company Limited (SCCL), which is pursuing a significant transition to renewable energy, is jointly owned by the governments of Telangana and India. They recently released three tenders for the building of 232 MW of solar projects in Telangana, including a ground-breaking 17 MW project on a coal mine overburden (OB) waste site. The deadline for the submission of bids is September 29, 2023.

The project’s scope includes the design, engineering, supply, construction, erection, testing, and commissioning of solar power facilities. Furthermore, the selected developer will be responsible for the operation and maintenance (O&M) of these projects for ten years.

Bidders must make an earnest money deposit (EMD) of $10 million ($120,552) and must quote for the total cumulative capacity of 67.5 MW, 30 MW, or 134.5 MW, with the selected bidder receiving the entire capacity.

Project Specifications

67.5 MW Solar Project (Mandamarri Area)

  • Location: Mandamarri area
  • Evacuation: 220 kV
  • Contract: Single bidder to be awarded both EPC and O&M contracts
  • Experience: At least 34 MW cumulative capacity of ground-mounted solar projects executed as EPC or developer in the previous seven years, including at least one project of 16 MW or more that has been operational for at least six months.
  • Financial Criteria: Minimum of Rs. 1.32 billion in annual sales, positive net worth in the most recent audited financial year, and Rs. 820 million in working capital.

134.5 MW Solar Project (Multiple Sites)

  • Locations: SCCL sites in Kothagudem (32.5 MW), Sri Rampur (27.5 MW), STPP area (37.5 MW), and Ramgundam-3 Area (20 MW ground-based and 17 MW OB dump-based)
  • Evacuation: 132 kV
  • Contracts: Multiple locations under one successful bidder
  • Experience: At least 67 MW cumulative capacity of ground-mounted solar projects executed as EPC contractor or developer in the past seven years, in addition to two grid-connected solar projects of 16 MW or more each that have been operational for at least six months.
  • Financial Criteria: A minimum annual revenue of Rs. 2.62 billion, a positive net worth, and a minimum working capital of Rs. 1.63 billion are required.

30 MW Solar Project (Multiple Sites)

  • Locations: Yellandu area (15 MW), Bhupalapalli area (10 MW), and Ramgundam-1 area (5 MW)
  • Evacuation: 33 kV
  • Experience: At least 22 MW cumulative capacity of ground-mounted solar projects executed as EPC contractor or developer in the preceding seven years, along with two grid-connected solar projects, each of 5 MW or more, that have been operational for six months.
  • Financial Criteria: Minimum annual turnover of Rs. 580 million, positive net worth, and minimum working capital of Rs. 350 million.

Other relevant details

  • Working Capital Assurance: Bidders shall secure a letter from an RBI-approved bank with a minimum net worth of Rs. 5 billion affirming the availability of a line of credit equivalent to or exceeding the working capital requirements for the specific project.
  • Additional Requirements: Specify grid-connected status on a project list authorised at least six months prior to proposal submission. Usage of only solar cells and modules from manufacturers listed on List-I (solar photovoltaic modules) of the latest Approved List of Models and Modules order.

Conclusion

SCCL’s ambitious venture in 232 MW of solar installations in Telangana is a significant commitment to renewable energy. These projects have several benefits, including diversifying the energy mix, converting coal mine overburden dump sites for renewable energy generation, increasing clean energy capacity, creating job opportunities, improving energy security, and contributing to global climate goals. SCCL’s proactive strategy demonstrates the vital role of public-sector undertakings in boosting renewable energy adoption and promoting a cleaner, more resilient energy future.