SECTION 1: KEY DATES

DATES TO FOLLOW!

•  Last day of bid submission – 28th Dec, 2013

•  The selected bidders are required to sign PPA with SECI within 1 month after the issue of LOI

•  The Project shall achieve Financial Closure within 210 days from the date of signing PPA

•  The selected bidders would furnish within 210 days of signing the PPA, the necessary documents to establish that the required land for project development is in clear possession of the developer (minimum 1.5 ha or 3.7 acre per MW per Project)

•  Project to be completed within 13 months of signing the PPA

SECTION 2: BID COSTS

APPLICATION FEE

1)   RFS document cost – INR 15,000

2)   Non-refundable project fee - INR 1 lakh/project

3)   Earnest Money Deposit (EMD) – INR 10 Lakh / MW per project in the form of Bank guarantee, valid for 9 months.

•  Bidder will stand to lose INR 1.15 lakh if the bid is not selected, and an additional INR 10 Lakh for every MW that he/she is selected for and does not build.

•  Minimum project size is 10 MW – so a minimum loss of INR 1 Cr per such project.

FEE UPON SELECTION

•  Selected bidders have to submit Performance Guarantee for a value of INR 30 Lakh / MW per Project before signing of PPA, validity period of 16 months.

•  On submission of Performance Bank Guarantee, the BG submitted towards EMD shall be returned by SECI to the successful Bidder.

SECTION 3: CAPACITY CONSTRAINTS

CAPACITY ALLOTTED UNDER THE SCHEME •  Total allotted - 750 MW (2013 – 2017)

§  In two parts §  Minimum capacity per project - 10 MW, Maximum capacity per project - 50 MW. §  One can bid for 100 MWs in each category (inter-connection at voltage level of 33 kV or above) §  100 MW maximum total capacity can be awarded to one party §  Max 5 projects at various locations §  Bids need to specify preference order of allocation

§  If applications are not received for the DCR category, the capacity would be moved to PART B §  One can apply to waiting list

PART A 375 MW, DCR (domestic content requirement) applicable

PART B 375 MW, open

SECTION 4: KEY RULES/CONSTRAINTS

FINANCE RELATED CONSTRAINTS

•  Net Worth of the bidder - INR 2 Cr. per MW (of capacity up to 20 MW)

•  Minimum Equity requirement of INR 1.5 Cr. per MW

•  The bidder is responsible for setting up the project including the transmission network up to the delivery point

•  Project cannot be sold for 1 year (initial lock-in period)

•  20% of the minimum equity contribution of Rs. 0.30 Cr/MW/Project has to be infused in the Project Company at the time of signing of PPA and another Rs. 1.20 Cr/MW/Project on or before the date of Financial Closure.

PROJECT RELATED CONSTRAINTS

•  The project cost will be as per the Bidder’s own estimation and declaration at the time of bidding, which will be finally confirmed by his own declaration at the time of financial closure

•  Plant to meet generation requirement to avail VGF benefit (and avoid compensation) •  CUF to be declared at the time of project commissioning (can be revised within 1 year).

Minimum declared value = 17% •  To maintain generation within + 10% and -15% of the declared value till the end of 10

years(min 15%), and within +10% and -20% of the declared value till the end of 25 years. •  Any excess generation over 10% of declared CUF can be purchased by SECI at Rs. 3/ kWh

(depending on availability of a buyer)

LAND •  Within 210 days of signing the PPA, the necessary documents to establish that the required

land for project is in clear possession of the SPD (minimum 1.5 ha per MW per Project)

•  SPD shall furnish documentary evidence towards the following: •  Ownership or lease hold rights from State / Central agency (for at least 30 years) in the name of the SPD

and possession of 100% of the area of land required for the Project. Land can be taken on lease from State /Central agency only.

•  Certificate by the concerned and competent revenue/registration authority for the acquisition/ownership/vesting of the land in the name of the SPD.

•  Sworn affidavit from the Authorized person of the SPD listing the details of the land and certifying total land required for the Project under clear possession of the SPD.

•  A certified English translation from an approved translator in case above land documents are in languages other than English and Hindi.

•  Change in the location of land from one State to other State is not permitted in any case. In exceptional circumstances change of land within the State could be agreed within 210 days of signing of PPA or at Financial Closure, whichever is earlier, but with prior approval of SECI. In such case the Bidding Company / Project Company has to furnish the revised STU connectivity letter for the new location.

•  In case of delay in achieving above condition as may be applicable, SECI shall encash Performance Bank Guarantees and shall remove the Project from the list of the selected Projects.

SECTION 5 – WHAT IS JNNSM OFFERING?

TARIFF

•  Fixed Tariff - INR.5.45 per kWh.

•  PPA duration – 25 years

•  SECI (Solar Energy Commission of India) to be the signing party

VGF – VIABILITY GAP FUNDING -  Projects to be allotted based on VGF (viability gap funding) -  Limited to lower of 2.5 Cr/ MW/ Project or 30% of project cost (to be declared). -  Actual disbursement of VGF to the selected SPDs will be based on the VGF/MW/

Project indicated in their bids or 30% of the “Completed Project cost”, whichever is lower.

-  The VGF when paid by SECI may be used to return part of the loan or SPD contribution (in excess of Rs.1.5 Cr./MW) or a combination thereof as the case may be.

-  SECI will issue a letter confirming sanction/grant of VGF so that the SPD is able to achieve financial closure for full amount if required at the time of signing of PPA

VGF SCHEDULE The VGF will be released by SECI to selected SPDs in six tranches as follows:

i)   50% on successful commissioning of the full capacity of the Project (COD).

ii)   Balance 50% shall be paid progressively over the next 5 years subject to the plant meeting requirements of generation (CUF within range specified in previous page)

a) At the end of 1st year from COD – 10%;

b)  At the end of 2nd year from COD – 10%;

c)  Attheendof3rdyearfromCOD–10%;

d)  At the end of 4th year from COD – 10%;

e)  At the end of 5th year from COD – 10%;

SECTION 6: APPENDIX

APPENDIX 1. MAIN SUBMISSIONS

WITH RFS DOCUMENT •  Letter from the STU/CTU/any other transmission utility confirming technical feasibility of connectivity of plant

to substation

•  In case of Bidding Consortium, if the STU connectivity letter is in the name of non-Lead Member, the same shall be accepted against application of one Project only and would be required to be transferred to the Project Company before signing of PPA.

•  Memorandum of Association, Article of Association, Certificate of Incorporation (if applicable) of Bidding Company / all member companies of Bidding Consortium.

-  A Company/ Consortium would be required to submit annual audited accounts for the last four financial years ( viz. 2009-10, 2010-11, 2011-12 and 2012-13 indicating the year which should be considered for evaluation along with a net worth certificate from a Chartered Accountant to demonstrate fulfillment of the criteria.

-  the Company shall submit a certificate from a Chartered Accountant certifying the availability of Net Worth on the date not more than seven days prior to submission of response to RfS along with a certified copy of the Balance Sheet, Profit & Loss Account, Schedules and cash flow statement supported with the bank statement.

-  A copy of Return filed by the Bidder and duly acknowledged by ROC for registering the shareholding and its terms & conditions must also be submitted at the time of submission of response to RfS and also before signing of PPA.

Earnest Money Deposit (EMD) in the form as per Format 6.3 A (to be filled out separately for each Project).

Board Resolutions, as per prescribed formats enclosed as Format 6.4 (to be filled out separately for each Project) duly certified by the Company Secretary or the Director of the relevant Bidder, as applicable to the Bidder and mentioned hereunder:

§  Board resolution from the Bidding Company or the Lead Member of the Consortium, as the case may be, in favour of the person signing the response to RfS and in the event of selection of the Projects, to sign the PPA and the VGF Securitization Agreement with SECI;

§  Board Resolution from the Bidding Company committing one hundred percent (100%) of the equity requirement for the Project / Board Resolutions from each of the Consortium Members together in aggregate committing to one hundred percent (100%) of equity requirement for the Project (in case of Bidding Consortium); and

§  Board Resolutions from Parent and /or Affiliate (whose credentials were used in the response to RfS), of the Bidding Company / any Member of the Bidding Consortium, undertaking to invest the entire amount as committed by Bidding Company / Member of the Bidding Consortium, in event of failure of the same to make such investment.

§  In case of a Consortium, the Consortium Agreement between the Members in the Consortium as per Format 6.5 along with Board resolution from each Member of the Consortium for participating in Consortium (to be filled out separately for each Project).

Format for Financial Requirements as per Format 6.6 as applicable (to be filled out separately for each Project).

A letter from the CTU/STU/any other Transmission Utility (as applicable) confirming connectivity of the Project as per Format 6.7 (to be filled out separately for each Project).

A disclosure statement as per Format 6.8 regarding participation of any related Companies in this bidding process (to be filled out separately for each Project).

Signed hard copy of the Summary Data Sheet as per Format 6.9 which is also to be submitted in a CD (in Excel format-no scanned documents required in this CD).

Format for Technical Criteria wherein Bidder shall certify that the technology to be adopted shall be commercially established technology and is under operation for at least one year. Final details of the same shall be submitted within 210 days of signing of PPA as per Format 6.10 (to be filled out separately for each Project).

Declaration by the Bidding Company / Lead Member of Bidding Consortium for the Proposed Technology Tie Up as per Format 6.11 (to be filled out separately for each Project) along with a Pre-feasibility report of the Project covering its salient technical details including technology proposed to be deployed and configuration of the Project. This can be modified while preparing the DPR to be submitted at the time of Financial Closure.

Submission of Financial Proposal (VGF requirement) as per Format in 6.12 A and Format 6.12 B in print and a soft copy in CD shall be submitted along with other documents mentioned in Section 6. Note: The VGF quoted in the above Format shall be only in INR. In case the Bidder quotes his VGF requirement in any other currency, his bid shall be rejected.

Preliminary estimate of Cost of the solar PV Project as per Annexure-A (to be filled out separately for each Project).

APPENDIX 2. PENALTIES

If the project fails to generate any power continuously for any 1 year within the 25 years or its major assets (components) are sold or the project is dismantled during this tenure, SECI will have a right to get refund of VGF on pro-rata basis and if not paid by the SPD, then a claim on assets equal to the value of VGF released, on pro-rata basis as specified hereunder:

•  After the bidding process is over, SECI shall release the Bank Guarantees of the unsuccessful Bidders within 15 days after the issue of Letter of Intents (LOIs) to the successful Bidders.

•  The PBG of SPDs shall be returned within 15 days after successful commissioning of project

•  SECI shall encash the Performance Bank Guarantee in the following manner: - •  Delay upto one month – 20% of the PBG amount shall be encashed as penalty for the first

month of delay, calculated on per day basis and proportionate to the capacity not commissioned in lots of 10 MW each

•  Delay of more than one month and up to three months – SECI will encash remaining PBG on per day basis and proportionate to the Capacity not commissioned in lots of 10 MW each.

•  In case the commissioning of the Project is delayed by more than 3 months, the pre-fixed levelized tariff of Rs.5.45 per shall be reduced at the rate of 0.50 paise per unit per day of delay for the delay in such remaining capacity which is not commissioned.

•  The maximum time period allowed for commissioning of the full Project capacity with encashment of Performance Bank Guarantee and reduction in fixed levelized tariff shall be limited to 24 months from the date of signing of PPA.