SECI issue Tender for MTPF, S&T of domestically manufactured Solar PV Modules with domestically manufactured Solar Cells – EQ

Summary:

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**Objective:**

This is a high-value, single-stage two-envelope e-tender followed by an e-Reverse Auction (e-RA) for the procurement of a large volume of solar modules. The primary objective is to source high-efficiency (≥21.65%, ≥585Wp) Mono-crystalline Si TOPCon glass-glass modules, strictly enforcing the “Domestic Content Requirement” (DCR) policy.

**Key Business Implications for Bidders (Manufacturers):**

1. **Massive Opportunity with Strings Attached:** This 870 MWp tender, divided into packages of 290 MWp, presents a significant business opportunity. However, participation is restricted to **Class-I Local Suppliers** whose modules and cells are manufactured in India and listed in the ALMM.
2. **Financial Commitment:** Bidders must demonstrate strong financial health, including a minimum average annual turnover of ₹198.23 Crores and positive net worth for a single 290 MWp package. A stringent EMD (escalating with package size) and a 10% Performance Bank Guarantee (PBG) are required.
3. **Complex Bidding & Pricing Model:** The selection is based on the lowest “Evaluated Bid Value” (EBV), which adjusts the quoted price to account for higher module efficiency (reducing Balance of System costs). This means a bidder with a higher-efficiency module can have a higher quoted price but still win if their EBV is lower.
4. **e-Reverse Auction & L1 Matching:** Post-technical evaluation, shortlisted bidders must participate in an e-RA to drive down prices. The process includes a detailed shortlisting mechanism and a potential “L1 Matching” round for other bidders to match the final lowest price.
5. **Long-Term Engagement:** The contract includes a provision for **repeat orders** of up to 100% of the awarded capacity at the same price, for projects in different locations, offering potential for extended revenue.
6. **Rigorous Quality & Compliance:** Suppliers must adhere to strict technical specifications, submit PAN files to an ILAC-accredited lab, and pass a detailed pre-dispatch inspection. They are also required to secure a 25-year warranty insurance policy.

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### Detailed Technical Summary

This document is a comprehensive tender package outlining every aspect of the bidding process, contractual terms, and technical requirements.

#### 1. Tender Structure and Process (Section I & II)
– **Type:** Single-Stage Two-Envelope (Techno-Commercial and Price Bids) followed by an e-Reverse Auction (e-RA). Bids are submitted online via the ISN-ETS portal.
– **Packages:** The total 870 MWp is divided into three packages of 290 MWp each. Bidders can quote for one, two, or all three packages. SECI reserves the right to add up to an additional 17 MWp per package at the time of award.
– **Mandatory Spares:** The supplier must supply an additional 0.5% of the awarded capacity as mandatory spares.
– **Eligibility:** Only Indian companies or JVs/Consortia (max 3 partners) are eligible. The lead partner must meet 100% of the technical and 50% of the financial criteria. The tender mandates the use of domestically manufactured solar cells and modules listed in the ALMM (Lists I & II).
– **Geopolitical Restriction:** Bidders from countries sharing a land border with India must be registered with the competent authority (DPIIT) to be eligible.

#### 2. Bid Evaluation and Award (Section II & Specific Annexure A)
– **Evaluated Bid Value (EBV):** The core of the financial evaluation. The EBV is calculated as `(Quoted Bid Value + Adjustment) / Quoted Package Capacity (MWp)`.
– **Efficiency-Linked Adjustment:** A key feature is an adjustment to the quoted price based on module efficiency. The formula `Adjustment = -4,51,126 * 290 * (η_quoted – η_ref)` reduces the evaluated price for modules with efficiency higher than the reference of 21.650%. This makes higher-efficiency modules more competitive.
– **e-Reverse Auction (e-RA):** Technically qualified bidders are shortlisted for an e-RA where they bid down their EBV in decrements of ₹50,000/MWp. The final L1 bidder(s) are selected based on the lowest EBV until the total capacity is awarded.
– **Repeat Orders:** The L1 supplier(s) can be offered repeat orders for up to 100% of the original contract value at the same price, for new project locations (e.g., Ramagiri, AP and Chitradurga, Karnataka).

#### 3. Commercial and Contractual Conditions (Section IV & V)
– **Zero Deviation:** This is a “zero deviation” tender. Any conditional bid is liable for rejection.
– **Payment Terms:** An optional 10% interest-free advance is available against an Advance Bank Guarantee (ABG). 80% (or 90% if advance not taken) is paid on dispatch, and the remaining 10% on receipt and acceptance at site.
– **Performance Security (PBG):** 10% of the contract value, valid for 27 months (project period + DLP + 3 months). Alternatives like a Payment on Order Instrument (POI) from REC/PFC or an Insurance Surety Bond are also accepted.
– **Liquidated Damages (LD):** Levied at 0.5% per week of the unexecuted value, subject to a maximum of 5% of the contract price.
– **Defect Liability:** 12 months from delivery, plus a latent defect liability of 5 years.
– **Warranty:** A 25-year performance warranty and a 10-year product warranty are required. Critically, the supplier must purchase a 25-year warranty insurance policy for 6% of the total invoice value to cover these liabilities.

#### 4. Technical Specifications (Section VII)
– **Technology:** Mandates Mono-crystalline Si TOPCon cells in a Glass-Glass module construction with Aluminum frames.
– **Performance:** Minimum module efficiency of 21.65% and a minimum power rating of 585 Wp at STC.
– **Durability:** Modules must be compatible with robotic cleaning systems and Horizontal Single Axis Trackers (HSAT). They must also pass rigorous testing for Potential-Induced Degradation (PID), salt mist, and ammonia corrosion.
– **Quality Control:** A detailed pre-dispatch inspection protocol is provided, based on ISO 2859-1 sampling, including flash testing, visual inspection, and Electroluminescence (EL) imaging.
– **Traceability:** Each module must have an RFID tag with a comprehensive database, including cell and module origin, I-V curve data, and serial numbers. Certificates (Forms F-21 and F-22) confirming DCR compliance must be submitted with invoices.

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