Centre questions Chhattisgarh's solar-powered irrigation pump bids

Ministry says state wasted Rs 200 cr of Kusum scheme grant with high bids

The Ministry of New and Renewable Energy (MNRE) has raised questions over the recently concluded tender of solar-powered irrigation pumps in Chhattisgarh under the centrally sponsored KUSUM scheme.
 
The ministry claims the high bids received in the tender could lead to a loss of Rs 200 crore to the exchequer.
 
In a letter to the Chhattisgarh State Renewable Energy Development Agency (CREDA), the ministry has raised concerns on the high bids, despite the tender using the same technical specifications as in the central bidding. The MNRE has said the Chhattisgarh tender received bids 40 per cent higher than received in the tender floated by EESL. Business Standard has reviewed the letter.

 

Several calls made to the CREDA office and the CEO did not elicit any response. State government officials said the department has no control over the bids placed by the private companies.
 
Senior MNRE officials said as the Centre wants a standardised price of solar pumps across the country, the ministry has asked the states to adopt the standard tender drafted by the ministry. “Some states like to offer their tender, while some procure via the EESL tender. But we have asked the state to follow same tender specifications. In the interest of the farmers, the cost of the pumps should come down gradually,” said the official.

 
CREDA had in May floated a tender for 20,000 solar pumps in the state, seeking the design, supply, installation, and commissioning of 3 HP and 5 HP (surface and submersible) capacity pumps, 10,000 each. The successful bidder will also have to take care of the operation and maintenance activities of the pumps for five years.
 
Under the KUSUM scheme, component B, which is for standalone solar pumps, the central financial assistance is 30 per cent of the benchmark cost or the tender cost, whichever is lower, state subsidy is 30 per cent and balance is paid by the farmer. In CREDA’s tender, the subsidy component is 90 per cent.

 
The MNRE, however, pointed out the same bidders have quoted lower bids in the EESL tender. The bidders that this paper spoke with said the CREDA tender had some minor tweaks such as the height of the system which impacted the cost.
 
EESL had in January issued a tender for off-grid/standalone solar pumps totalling 317,000 pumps to be set up across all states and Union Territories. But after the technical round, around a dozen companies that participated in the tender moved the Delhi High Court against the bidding process. The court has now directed the Union of India to respond to these allegations.

 
This is the second tender of solar pumps by EESL. It issued in 2019 a tender for off-grid solar water pump systems across India under the PM KUSUM to promote solar in agriculture. Under the tender, 181,200 solar pumps were slated to be installed in India.