RfS/PV1/RREC/5 for 50 MW Projects of 1 MW Clarifications to the queries raised by stakeholders

Sl. No. 1. 2. 3. RFS Clause no. clause 1.1 Clause 1.9 clause 3.2.1 clause 3.2.2 Clause 3.2.2 Clause 3.2.2 Clause 3.3(b) Clause 3.5 Queries/ clarification Will it be binding on the part of procurer to purchase Power from these 50 projects? In case of violation or denial what will be the remedy? Extend the due date at least for further a week. No two plants will be connected to one 33 kV GSS. How the applicant will know about this? RREC Reply

Annexure -A

4. 5.

How two nearby 1 MW plants can be connected to 2 different 33 kV S/S keeping line length of 5 km.? Two projects may be allowed to be connected to the same 33 KV substation. This will also reduce the cost of 11 KV lines to be constructed by Discom. When the power producer is to borne the cost of 11 kV line beyond 5 km., the total length of line may be increased from 7 km to 10 km, to facilitate selection of land. Will any Advantages or any Priority be given to those who are registered earlier to RRECL? Company can submit maximum five Applications of 1 MW each. Company has to pay Rs. 5000 by DD/Pay order against RfS Document Fee for all Applications?

6.

Please refer clause 1.1 and 1.2 of RfS. JVVNL, AVVNL, JdVVNL will directly purchase power from Selected solar power producers. Extended up to 9.6.2012. Please see our website time to time for updation. As per Sr. No. 1 of format 6.8, each successful SPP is to get approval of technical feasibility of connectivity of their solar plant from Discom. Discom will not allow two companies to provide connectivity to one substation. Each solar plant will be connected by maximum 7 km, 11 kV transmission line nearby 33 KV GSS. No two power plant will be connected to one 33 kV GSS. No. These projects are demonstration projects and only one project of 1 MW capacity can be connected to nearby 33kV GSS. The terms of RfS document will prevail. No. The Length of 10 km shall create problem for voltage regulation etc. The terms of RfS document will prevail. No. Rs. 5000/- has to be paid by each applicant. Thus in this case, if a Company A is applying for 5 projects in one application, then Company A will pay Rs. 5000/- only. If a company B is applying for 2 projects, and its affiliate company C is applying for 3 projects, then each Company B & C shall submit separate application. In this case B, as an applicant, will pay Rs. 5000/ as cost of document for their 2 projects C, as an applicant, will pay Rs. 5000/ as cost of document for their 3 projects respectively.

7. 8.

9.

Clause 3.6

Can we participate in the RFS for 1 MW project as German Company? If a Developer applies for RfS 5 as well as for RfS 6 and RfS 7, how would the Net worth be calculated. Shall it be calculated separately or shall it be exhausted against each RfS

Yes, As per clause 3.6, note (ii) of RFS. Meet-out of Net-worth strength requirement by firm indicates that firm has capability to setup /develop /handle a particular RFS/BID/tender All RFS BIDS are to be scrutinized independently as per terms and conditions of respective Bid documents. As per requirement of bid documents net-worth is to be meet by each Bidder.

10. Clause 3.6

11. clause 3.6

Can we pre-register the project in RREC as a German company?

A Foreign company having Office Establishment in India can have registration of its project with RREC with an assurance in writing that before starting any work, an Indian Company shall be formed. After selection for project in bid and on formation of Indian company under Company s Act, 1956 the registration shall be transferred to Indian company and their after PPA will be signed. A bidder has to be a Company. Please refer clause 3.6 of RfS.

12. Clause 3.6

If multiple investors form a company to submit a tender for 1 MW solar power plant, and use their own money to fund the project, what kind of financial proof they will need to provide, as they are using their existing financial resources, and currently do not have a company, so can't provide audited financial statements. Can a company submit 5 bids and later incorporate 5 separate project companies? Can a company submit 5 bids and later incorporate 1 project company which then sets up the 5 separate projects under 5 different PPAs ? Can a company/technology partner have less than 10% share in more than 2 projects? Who is required to certify the copies of Balance Sheet, Profit & Loss, Schedules and Cash flow statements? Will it be a CA or Statutory Auditor? Who is required to certify the computation of net worth? Will it be a CA or Statutory Auditor?

13. Clause 3.6 14. Clause 3.6 15. Clause 3.6 16. Clause 3.6 17. Clause 3.6

As per clause 3.6 note (iii), the short-listed company may form its SPV (s) with the relationship of Parent- Subsidiary before signing of PPA. As per clause 3.6 note (iii)., the shortlisted company may form its SPV, with the relationship of Parent- Subsidiary before signing of PPA to execute 5 projects( 5 PPA). Yes Can be either of CA or Statutory Auditor.

Can be either of CA or Statutory Auditor.

18. clause 3.6 (iv)

Where the financial evaluated company is not the bidding company or a bidding consortium as the case may be. Bidding company or member shall continue to be an affiliate of the financially evaluated company till execution of PPA . Please clarify. Net worth shall be met as on day more than seven days prior to the last date of submission duly supported with CA Certificate i.e. Net worth shall be on or before 2/06/12 considering the last date of submission as 9/06/12. Under section 3.6-A-v, if the parent company is a foreign company and it can hold 100% equity in the bidding company, once selected the net worth has be bought into the bidding company before signing the PPA. Is it required for the foreign Parent company to prove their net worth before the bidding process under section 3.6-a-(v)? Short listing of projects, when qualified bidders are more. Here probably we need some clarification regarding discount to be offered particularly against clause 3.8.2.2. you have mentioned that bid bond for the amount calculated as per clause 3.8.1(d) however there is no clause in the RfS. Change in the percentage of controlling shareholding of the Bidding Company or Lead Member in a project company. Selected Bidder has to achieve Financial Closure for the project within 210 days from the Effective date. Some flexibility must be available with the developer in order to achieve Financial Closure. There shall be Equity lock-in-criteria specifying 50% of the equity holding till 1 year from the COD and 26% till 3 years from the COD. With due intimation to RREC, developer shall be allowed to divest up to 50% of the equity. This will increase chances for achieving timely financial closure and project commissioning. Please clarify requirement for domestic content in first para.

Status of the relationship of the affiliate and the Parent or consortium has to be maintained till the execution of the PPA.

19. Clause 3.6 A (iii)

Yes.

20. Clause 3.6-A-(v)

Yes

21. Clause 3.6-A-(v) 22. Clause 3.8.1 23. Clause 3.19 Bid Bond 24. Clause 3.20.2, 3.20.3, 3.20.4.

Yes, every Parent Company, whether Foreign or Indian, of whose net worth has been used, has to prove the Net Worth requirement as per RfS. These are detailed in clauses 3.8.2.6, clause 3.8.2.7 and clause 3.8.2.8 Pl read clause no 3.8.1 (d) as 3.8.2.8.

Not allowed. Please refer clause 3.6 A (iv)

25. clause 3.21.1

Pl delete following last line of first Para. and would also need to specify their plan for meeting the requirement for domestic content

26. Clause 3.21.2(a)

27. clause 3.22.1

Change in the location of land from Rajasthan State to other State is not permitted in any case. Change of land within the State could be agreed to within 210 days of signing of PPA or at Financial Closure, whichever is earlier, in such case the Bidding Company / Project Company has to furnish the revised State transmission utility connectivity letter for the new location. 1 Please amend State transmission utility to the concerned distribution company. 2 There is no involvement of the STU and hence, all such references to STU in the RFS Documents shall be changed to concerned distribution company. Time allowed for commissioning of the projects as per clause 3.22.1 is 12 months from due date of signing of PPA. Whereas as per clause 24 of Rajasthan Solar policy 2011, the time allowed is 15 months from the date of SLEC approval. The maximum time period allowed for commissioning of the Project with encashment of Performance Bank Guarantee and payment of Liquidated Damages shall be limited to 18 months from the date of signing of PPA, the PPA will be terminated and the Project shall be removed from the list of selected projects. Please clarify. The land will be allotted by RRECL for setting up of solar plant @ 10% of applicable DLC rates Whereas clause 14.2.2 of Solar Policy 2011 provides that the Govt. land for the plant shall be allotted at a concessional rate 10% the DLC rate. Please clarify. The process of reservation of land will be completed by concerned Discom within 30 days of recommendation for the RREC whereas as per Clause 14.2.9 process to be completed within 60 days of recommendation of RREC NOC

this part para be amended as : in such case the Bidding Company / Project Company has to furnish the revised connectivity letter for the new location to the concerned Distribution company. Please note that in case of 33kV line and for line bay in 33/11kV GSS, Concerned Discom is considered at STU. As such any word STU refereed in RfS for 33 or 11kV system will relate to concerned Discom. As per clause 24.3 of solar policy, completion time schedule for solar plants under clause 5.1.7(ii) of solar policy shall be as per Bid documents. As per clause 24.5 of solar policy, this 15 month time schedule is applicable for solar plants being setup under clause 5.1.6 and 5.1.8 of solar policy. This clause be read as The maximum time period allowed for commissioning of the Project with encashment of Performance Bank Guarantee and payment of Liquidated Damages shall be limited to 18 months from the date of signing of PPA. In case of delay beyond six months, the PPA will be terminated and the Project shall be removed from the list of selected projects NO such details in RFS. It is clarified that on recommendation of RRECL, Revenue department will allot Govt Land at @ 10% of the applicable rate of DLC at the particular place. Process of reservation of land is not relevant in case of selected projects.

28. Clause 3.22.3

29. clause 5.2.1

30. clause 5.2.1

31. clause 5.2.1

Clause 14.4.3 of solar policy land in Solar Park As per this clause there is provision of allotting land in solar park. This means land for only one plant will be allotted in solar park. Please clarify that the length of line 7 km is inclusive or exclusive of 5 km Line in the scope of Discom. If it is inclusive of 5 km Discom Line we request to consider if as exclusive so that the developer can identify the land for project within a radius of 12 KM from Discom GSS. Since the procurer is responsible for providing 11 kV interconnection including construction of 11 kV transmission line, it is requested that the procurer also provide transmission arrangements for construction of power plant. Discoms of Rajasthan shall provide complete 11 kV line bay (including civil works) and its interconnection with existing electrical system in 33/11 kV sub-station at Discom(s) cost. Solar Power Producer at a later date wants to supply the power on higher voltage, on feasibility the requisite modification, viz. addition of line bay on higher voltage, interconnection with main bus etc. shall be done by Discom(s) as applicable as a deposit work on behalf of the Power Producer. 1. We understand that Discom(s) will bear all costs related to erection of transmission system for power evacuation. Please confirm. 2. We understand that, all system strengthening works (if required) for providing transmission access shall be carried out by Discom at its own costs. There will not be any liability on the Developer for making any sort of payments in this regard. Please Confirm a) Grid connectivity charges 2.00 lacs per MW. It is presumed for 5 km length. b) If length is more than 5 km how much charge will be required?

Abstract of clause14.1 of solar policy for "Allotment of land" is Annexed for reference. 1 MW solar plant land will not be allotted in Solar Park. Relevant clauses already detailed in section 5. Maximum length of 11 kV transmission line is 7 km which includes 5 km length of Discom. The terms of RfS document will prevail.

32. Clause 5.6

33. Clause

5.6
34. clause 5.8.1

No. The Rules of Discom will apply for construction power. Please note: For this connectivity charges @ 2 lacs per MW are to be paid by Solar power producer as per clause 5.8.1 of RfS. Presently SPP is not allowed to go on higher voltage as per terms and conditions of RfS. Bid documents allow only Transmission line connection at 11kV in 33/11kV GSS. At later date under any contingency, if SPP wants and Discom allows connecting on 33 kV then this work will be as deposit work of Solar power producer. In this RfS/PV1/RREC/5 the concerned Discom will provide 11kV line up to 5 km. While balance line if required up to 2 km will be in account of SPP. Augmentation in 33/11 kV GSS and 33kV line on HV side of 33KV GSS etc will be done by Discom as per clause 5.10 of RfS. No. The Grid connectivity charge of Rs. 2 lacs /MW is for the cost of 11 KV line bay. Please refer Clause 21.4 of Solar Policy also. b) Cost of extra line (as deposit work) to be paid by SPP will be intimated by the concerned Discom. NIL. Discom constructs thousands km of 11 and 33kV lines in a year.

clause 5.8.2

35. clause 5.8.1

36. clause 5.9

Delay in utilization of line bay and 11 kV line shall attract 12% per annum penalty. In case there is delay in completion of line, what

penalty Discom will pay to bidder.

If SPP will follow terms and conditions of RfS then such condition will never happen. Further RREC will take care and follow up with Discom in progress review meetings. Timely completion of line by Discom is also responsibility of SPP. Discom officers know their responsibility for completion of line in time. SPP has to intimate his schedule and progress time to time to Discom authorities. SPP will follow up with concerned Discom officers and work as a team so that requisite line is ready well in advance. No. This is to be read as:- :Format 6.2- Format for Power of Attorney ---Lead Member. This is to be read as:- Format 6.7--Format for Technical Criteria This is to be read as:- Format 10-- List of Banks for issuance of BGs/ Bid Bond/ Performance Bank Guarantee Summary Data Sheet (Format 6.13) is given separately in excel format. Annexure B is enclosed.

37. Clause 5.10 38. Formats , Section 6

Please clarify whether SPD would be compensated for generation loss during system augmentation. a) b) c) d) Formats for Power of Attorney---Lead Member OR Technical Criteria Annexure -2 List of Banks for issuance of BGs/ Bid Bond/ Performance Bank Guarantee There is no such format no. 6.13. Please provide correct referencing Point no. XVII Check List Annexure

39. Section 6

Format of Bid Submission A&B

40. Clause Format 6.7 41.

We would like to know whether previous experience of installation is the criteria. If so, can we tie up with an experience PV manufacturer? Do you have any yearly(monthly) Production Record of any commissioned PV Power Plant in Rajasthan , If yes then can you provide it to us Definition of Chartered Accountant is repeating. Kindly delete one definition.

Not required at time of RfS submission. Details as per format 6.7 are needed for financial closure.

Please see Performance Analysis of 5 MW Solar Power plant at Khimsar on our website rrecl.com One definition of Chartered Accountant appearing at page no 9 is deleted.

42. Definition s Page 9

Sl.No. PPA 1. PPA Clause 3.1(e)

Queries raised The SPP shall make Project Financial Arrangements and shall provide necessary documents ; The Developer shall submit a certificate from the Lender/Lead Lender for achievement of Financial Closure for the project. Please confirm Notwithstanding Article 4.4.1, the SPP is free to sell such power to any third party prior to the Scheduled Commissioning Date and any capacity which is in excess of the quantum of power agreed to be supplied under this Agreement from Scheduled Commissioning Date. The cap as per clause 4.4.1 on the excess units generated from the solar power plant may be removed. The power plant is connected directly to the Discom and it is practically very difficult and costly to sell additional units to a third party under short term open access. All power generated from the project shall be procured by the Discoms only. Please confirm This clause provides for transfer of Procurer s rights and obligations to an affiliate. It is requested that the transfer be provided for only in case the Procurer s affiliate is capable of discharging the Procurer s obligations. These include the affiliate having at least equivalent or better balance sheet, track record etc. that would be acceptable to SPP.

Reply by RREC

Yes

2.

PPA Clause 4.4.2

No. Please refer RfS bid document No. Refer our RfS bid document.

3.

PPA 15.1.3

Yes