CIL is looking for prospective equity partners with a net worth of a minimum INR 20 billion, to launch itself into integrated PV manufacturing. (Photo Credit: Coal India Limited)
- CIL has launched a pre-qualification round to look for equity partners for 4 GW PV manufacturing project
- Prospective partners will collaborate with CIL subsidiary CIL Solar PV Limited for integrated manufacturing facility
- For the project, CIL has completed detailed market assessment exercise to evaluate the industry landscape, and undertaken a pre-feasibility study for overall financial assessment
Indian government’s coal mining company Coal India Limited (CIL) has launched a pre-qualification tender seeking to shortlist prospective equity partners to set up 4 GW solar PV ingot-wafer-cell-module manufacturing plant. The proposed manufacturing project will be helmed by a CIL subsidiary called CIL Solar PV Limited (see India PV News Snippets: CIL, EESL, BHEL, IR, APGCL).
It is now looking for equity partner to implement and operate the manufacturing project and is inviting interested parties to submit their request for qualification (RFQ). Basis the response received, prospective players will move to the next round of selection.
Net worth of the applicant should be a minimum of INR 20 billion. Selected equity partner will be expected to make equity investment in the 4 GW project, secure project financing with CIL, select technology, involved with research and development (R&D) activities to track new technology developments, among other roles. CIL, on the other hand, will be responsible for acquiring land for the project, obtain all requisite approvals, incentives and the like.
Last date to submit complete RFQ documents is September 16, 2021 and the submissions will be opened by the company on September 17, 2021, according to the RFQ issued on the company’s e-procurement website with tender ID 2021_CILHQ_216887_1.
CIL said it has conducted a detailed market assessment exercise to evaluate the industry landscape, and undertaken a pre-feasibility study for overall financial assessment of the proposed project. Currently, the company is in advanced stage of discussions with selected states to identify site location. It is also ‘undertaking necessary and preparatory steps’ to participate in the Ministry of New and Renewable Energy’s (MNRE) Production Linked Incentive (PLI) tender for solar PV manufacturing (see IREDA Launches INR 45 Billion Production Incentive Tender).
A coal producer, CIL has been mandated to take up decarbonization and diversification initiatives to be able to contribute to the national target of achieving 450 GW of renewable energy capacity by 2030, to which solar power will contribute around 280 GW. To meet this, there needs to be enough PV manufacturing capacity and the CIL will contribute to this target.
By March 2024, it also aims to build 3 GW solar power capacity to become a net zero energy company (see 3 GW Solar Power Plans Unveiled By Coal India Ltd).