The Information Technology Electronics and Communication Department of Telangana, acting through the Telangana Renewable Energy Development Corporation Ltd. (TGREDCO), has issued an open tender for the design, supply, installation, testing, and commissioning of ground-mounted solar power plants. The procurement involves a cumulative capacity of 19 MW to be installed at 18 substations across nine erstwhile districts in Telangana. This project is being implemented under the Rate Contract CAPEX Mode as part of the substation solarization initiative under the PM-KUSUM framework.
Key Tender Specifications and Financials
The following table summarizes the technical and financial requirements for the tender:
| Parameter | Details |
| Tender Reference Number | TGREDCO/ 19MW SS SOLARIZATION/2026 |
| Scope of Work | Ground-mounted installation, Remote Monitoring Systems (RMS), and a comprehensive 5-year warranty. |
| Operation & Maintenance (O&M) | 5 years from the date of commissioning. |
| Tender Fee | ₹1,180 |
| Earnest Money Deposit (EMD) | ₹25,00,000 |
| Performance Security | ₹1 Lakh per MW (valid for 15 months; returned after COD). |
| Payment Security Mechanism | Letter of Credit (LC) provided by DISCOMs. |
| Developer Net Worth | ₹1 Crore per MW (as per PM-KUSUM Component A guidelines). |
Project Implementation and Site Distribution
The implementation plan follows a review by Chief Minister Revanth Reddy, focusing on the utilization of vacant land located near existing power infrastructure.
- Site Selection: Solar plants must be located within a 5 KM radius of the targeted 33/11 kV substations.
- Distribution Pattern: This pilot project covers nine erstwhile districts, with two plants allocated per district, totaling 18 substations.
- Land Requirements: Technical criteria specify land allocations based on capacity:
- 0.5 MW plant: 1.5 to 1.75 acres.
- 1 MW plant: 3 to 3.5 acres.
- 2 MW plant: 7 to 8 acres.
Critical Dates and Submission Timeline
Bidders must adhere to the following schedule for the 2026 procurement cycle:
- Notice Date: May 22, 2026.
- Document Download/Bid Submission Start: May 27, 2026, at 03:00 PM.
- Document Download/Bid Submission Deadline: June 10, 2026, at 03:00 PM.
- Bid Opening Date: June 10, 2026, at 05:00 PM.
The PM-KUSUM and State Policy Context
TGREDCO, acting as the State Designated Agency (SDA), is the implementing body for decentralized ground-mounted plants under PM-KUSUM Component A. This framework targets plants between 500 kW and 2 MW in capacity located near 33/11 kV substations.
- Eligible Entities: Bids are open to individual farmers, groups of farmers, cooperatives, panchayats, Farmer Producer Organisations (FPO), Water User Associations, Self Help Groups (SHGs) or their federations, and developers.
- Tariff and PPA: The Telangana State Electricity Regulatory Commission (TGERC) has finalized a pre-levelized tariff of ₹3.13/kWh. Power Purchase Agreements (PPAs) with DISCOMs are fixed for a duration of 25 years and include a “Change in Law” clause.
- Late Payment Penalties: If a DISCOM delays payment beyond 30 days from the due date, a late payment surcharge of 1.25% per month on the outstanding amount is applicable, calculated on a day-to-day basis.
- State Incentives: The policy framework provides several benefits to developers:
- 50% reimbursement of Net SGST upon Commercial Operation Date (COD).
- 100% electricity duty exemption.
- Exemption from obtaining a No Objection Certificate (NOC) from the Pollution Control Board (PCB).
- Reimbursement of DISCOM supervision charges, stamp duty, and water charges.

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