MSEDCL’s Despotic (Tughlaki) 25 MW Tender: Insight by MASMA

Pune, September 21, 2020: Maharashtra Solar Manufacturers Association has issued a press release which gives an insight to every reader about the plight of Solar system installers and the incompetencies of Maharashtra State Electricity Distribution Company Limited (MSEDCL) which is not only depriving the state of Maharashtra of availing Solar Subsidy from Centre but also discouraging the use of solar system entirely.

Back Ground: Since April 2019 there is no subsidy scheme for solar rooftop in Maharashtra & the previous scheme of 50Mw took just about 5 months to be successfully completed by MEDA. In March 2019 MSEDCL demanded just 25 MW subsidies for entire Maharashtra from MNRE, whereas the Discom’s of Gujarat which is half the size of Maharashtra had taken up 600 MW. Just for calculation sake 25 MW subsidy amount is approximately Rs 31 Crores & for 600 MW it is Rs 750 Crore (For a half-size state). This was a clear case of

injustice to the highest taxpayer state of the country which went uncontended because of MSEDCL’s unenthusiastic attitude towards Solar Industry. The additional Central subsidy MSEDCL could have easily received could have boosted Maharashtra’s economy. On the contrary, MSEDCL did not want to distribute even this minuscule of 25 MW subsidy from Centre to the people of Maharashtra & shamelessly put the scheme in the dustbin. Also meanwhile MSEDCL’s Anti Maharashtra approach continued by means of proposing Net Billing, Grid support charges & they kept the consumers confused & Solar Integrators on their toes to make them completely forget the subsidy process.

When Team MASMA (Maharashtra Solar Manufacturers Association) briefed this entire episode to the newly appointed Energy Minister Dr Nitin Raut, he immediately demanded an explanation from MSEDCL. MSEDCL informed that they do not have the proper portal & training for the subsidy disbursement process, Dr Nitin Raut immediately instructed them to get the needful done on a war footing. MSEDCL hid the fact that MNRE had allowed MSEDCL to involve MEDA, which already had the required portal & experience to distribute the subsidy. MSEDCL again went into sleep mode & did nothing to concrete to start the process. Again MASMA approached Dr Raut & he decided to arrange a webinar on 27th May from Vidyut Bhawan calling upon the principle energy secretary, MSEDCL commercial director, DG MEDA, MASMA members from across Maharashtra along with other dignitaries. In this meeting, it was informed by MSEDCL that it is shortly going to start the empanelment process & Team MASMA requested to empanel MEDA registered integrators directly to avoid any further delay. Also, Team MASMA & DG MEDA requested Dr Raut & principle energy secretary to involve MEDA for subsidy process for faster disbursement & immediate implementation of the already delayed scheme. Dr Nitin Rautji instructed MSEDCL, MEDA & MASMA to form a joint committee & work hand in hand for faster & efficient implementation of solar policies for the benefit of Maharashtra state. He also instructed MSEDCL & MEDA for restarting the subsidy process immediately.

Current Situation: Despite all the minister’s instructions, MSEDCL again delayed the process for more than three months & finally on 28th August 2020 came up with an EOI to initiate the empanelment process for subsidy disbursement. When this tender was published half-heartedly after 17 months, it was such a clear cut copy paste job from a neighbouring state that MSEDCL even forgot to replace the GST number with its own. The copy-paste conditions mentioned in the original Tender were for an MW level tender & beyond MNRE guidelines. The MNRE published benchmark price was for eg. Of a Maruti 800 & the terms, as well as specifications mentioned, were of a Mercedes car. MSEDCL was made aware of its mistakes by Team MASMA by mail & also in its Pre BID meet on 9th September. MSEDCl hastily corrected a few of these mistakes & published changes on the very last date of the tender sale that is on 17th September. They gave an extension of just 8 days without clarifying all the ambiguities pertaining to the EOI terms asked in Pre Bid meet which is simply in violation of Norms. With so many changes & corrections published on the last day, another pre-bid meet should have been called up to ensure transparency of the process. Since Honourable Energy Minister is suffering from COVID19, MSEDCL intends to carry this unlawful process in his absence & favour a few big companies.

Following are the highlights of a few unjust conditions imposed by MSEDCl & some demands of MASMA:-

Several other important queries on disbursement of payment, payment of additional work, performance bank guaranty etc. etc. are left unanswered. MASMA demands an immediate pre bid meet for clarification of all queries & suitable changes following an 8 day extension for inviting bids.

Appeal By MASMA to the public at large, Dr Nitin Raut & Nitin Gadkari: “Most of our members (All MSME’s) are in initial stages of their career & have no alternate source of business. They are mostly technocrats & decided to provide employment by doing business rather than taking up an easy job. We were in hope of a better future for us & our employees but MSEDCL is sitting on the central scheme for more than 17 months. Now MSEDCL is complicating the scheme unnecessarily. Several of our members are on verge of bankruptcy & several have even closed their business. Who will be responsible if one of our members takes an extreme step like a debt-ridden farmer? MSEDCL must behave responsibly & act fair towards honest taxpaying & employment generating businessmen otherwise MEDA must be allowed to execute the project without any further delay. We require support from all segments of society not only for our members but also for the citizens of Maharashtra”, the association appealed.