Bidding process under Swiss Challenge Method completed
Mohinder Verma
JAMMU, Nov 16: In a significant step towards expanding energy generation capacity, the Jammu & Kashmir Energy Development Agency (JAKEDA) is all set to award 20 small hydroelectric projects across the Union Territory, as the bidding process under the Swiss Challenge Method has been completed and Letters of Intent have been issued to the selected bidders.
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The projects, ranging between 0.70 Mega Watt (MW) and 2 MW, were bid out in accordance with the Policy for Development of Micro/Mini Hydro Power Projects–2011, which mandates that self-identified projects be allotted through the Swiss Challenge Method, granting the originator the first right of refusal.
According to the Request for Qualification & Proposal (RFQ & RFP) document, the developers will execute the projects under the Independent Power Producer (IPP) mode, with each scheme to be completed within seven years from the date of award. After operating the projects for a 40-year lease period, developers will transfer the assets back to JAKEDA.
The projects all set for allotment are—1.5 MW Narastan in Pulwama, 1.8 MW Kither in Kishtwar, 0.70 MW Shutkari in Ganderbal, 2 MW Chatru-Prawra-II in Kishtwar, 2 MW Prawra-I in Kishtwar, 2 MW Prawra-II in Kishtwar, 2 MW Sangri-I in Reasi, 2 MW Upper Astanmarg in Anantnag, 2 MW Sangam in Kulgam, 1.8 MW Upper Hori in Kishtwar, 1.4 MW Badshala in Reasi, 2 MW Khara in Doda, 2 MW Takson in Reasi, 2 MW Nooch in Reasi, 1.2 MW Dudal in Anantnag, 2 MW Lar in Reasi, 2 MW Bradhaj in Anantnag, 0.70 MW Sarabal in Anantnag, 1.20 MW Sohal in Kishtwar and 2 MW Sohal-II in Kishtwar.
The selected bidders, who have been issued Letters of Intent, are required to pay upfront premium (minimum Rs 2 lakh per MW), pre-development costs of Rs 6.125 lakh per MW to JAKEDA and also provide a performance guarantee of Rs 11 lakh per MW.
The pre-development cost is payable in four installments—20% on issuance of Letter of Award, 20% on accord of TEC to the project, 30% on financial closure of the project and 30% on commercial operation date. As per the RFQ/RFP, IPPs must also obtain all statutory and non-statutory clearances and construct necessary approach roads and infrastructure at their own cost. However, the Government and JAKEDA will facilitate obtaining the statutory clearances in a time-bound manner.
It is pertinent to mention here that under the Swiss Challenge Method, the project originators who initially identified these mini hydel sites have been permitted to match the highest bid. If the originators fail to match the premium offered by the top-ranked bidder within seven days, the project will be awarded to the highest bidder.
JAKEDA has been mandated by the Government of Jammu & Kashmir to implement all projects up to 10 MW capacity. The UT has an estimated hydro potential exceeding 20,000 MW, making small hydro a critical component of its clean-energy roadmap.
Officials said that the issuance of Letters of Intent marks the final step before formal allotment and the signing of Implementation Agreements and Land Lease Agreements with the successful bidders.
The Government land, if required for power projects, would be allotted on lease for 40 years at a premium of Rs 1 per sqm or as applicable. However, in case of non-availability of Government land, the IPP will purchase land in the name of the CEO, JAKEDA, and it will be leased out to the IPP for 40 years. In the latter case, the Science and Technology Department (JAKEDA) will assist the IPP in acquiring the land if the need arises.
“These 20 small hydroelectric projects will significantly boost local renewable energy capacity and strengthen J&K’s progress toward energy sustainability,” a senior official of JAKEDA said.
It is pertinent to mention here that the estimated hydro potential in J&K is more than 20,000 MW, of which projects totaling 16,200 MW have already been identified. In order to electrify villages and hamlets, thrust has been laid on encouraging the development of micro/mini/ small hydro power projects in the UT, and the Science & Technology Department has endowed JAKEDA with the mandate to implement all projects up to an installed capacity of 10 MW.
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