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					</table><p>The Madhya Pradesh Electricity Regulatory Commission (<a href="https://mperc.in/" target="_blank" rel="noopener">MPERC</a>) has approved a joint petition filed by Rewa Ultra Mega Solar (<a href="https://rumsl.mp.gov.in/" target="_blank" rel="noopener">RUMSL</a>) and MP Power Management Company (<a href="https://www.mppmcl.com/" target="_blank" rel="noopener">MPPMCL</a>) to exclude a Goods and Services Tax (GST) reduction from the scope of “change in law” under the power purchase agreement (PPA) for solar park projects at Morena, Madhya Pradesh.</p>
<p>RUMSL is conducting the bidding process under scrutiny in accordance with the Ministry of Power’s “Guidelines for Tariff-Based Competitive Bidding Process for Procurement of Power from Grid-Connected Solar PV Power Projects,” issued under Section 63 of the Electricity Act, 2003.</p>
<p><strong>Background</strong></p>
<p>RUMSL <a href="https://www.mercomindia.com/rumsl-invites-bids-for-600-mw-solar-project-with-energy-storage" target="_blank" rel="noopener">issued</a> a tender for two ground-mounted, grid-connected solar photovoltaic projects, each coupled with a co-located battery energy storage system in September 2024.</p>
<p>The financial proposals were under evaluation at the time of the petition, with the e-reverse auction process yet to be conducted.</p>
<p>Approaching the Commission, the petitioners drew attention to the decision made by the GST Council at its 56<sup>th</sup> meeting on September 3, 2025, which recommended reducing the GST on renewable energy devices and parts, including photovoltaic cells, from 12% to 5%, effective September 22, 2025.</p>
<p>A notification from the Central Board of Indirect Taxes and Customs was to give effect to this recommendation. Under the PPA terms, any change in tax rates occurring after a date seven days before the proposal due date (August 22, 2025) qualifies as a “change in law” event. The GST cut, therefore, technically fell within the period that would trigger such a classification.</p>
<p>The petitioners, however, requested that this GST reduction not be treated as a change in law under the PPA. They argued that allowing bidders to directly incorporate the revised GST rate into their tariff quotes during the e-reverse auction would simplify the process and avoid subsequent disputes.</p>
<p>They submitted that this approach would ensure that MPPMCL, as the procurer, would directly secure the financial benefit of the lower tax rate through the competitive tariffs discovered in the auction.</p>
<p>To facilitate this, the petitioners proposed a revision to the definition of “change in law” under the PPA, specifically excluding the reduction in the GST rate from 12% to 5% on renewable energy devices and parts.</p>
<p>The petitioners stated that all bidders eligible to participate in the e-reverse auction had confirmed their willingness to factor in the reduced GST rate when quoting tariffs. This confirmation, the petitioners argued, eliminated the need for any post-auction claims under the PPA’s change-in-law provisions.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>Based on the reasoning of the petitioners, the Commission noted that the GST reduction effective from September 22, 2025, will not be treated as a change in law under the PPA for the Morena Solar Park projects.</p>
<p>It said the procurer would not seek any change in law relief on this account, and bidders must continue to factor in the revised GST rate during the auction.</p>
<p>In August this year, MPERC <a href="https://www.mercomindia.com/mperc-approves-tariff-for-232-mw-of-solar-projects-under-pm-kusum" target="_blank" rel="noopener">approved</a> a tariff of ₹2.94 (~$0.0336)/kWh discovered in the fourth and fifth auctions conducted by Madhya Pradesh Urja Vikas Nigam under Component C of the PM-KUSUM.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


MPERC Allows Bidders to Factor GST Change in Solar Park Auction


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					</table><p>Rewa Ultra Mega Solar (<a href="https://rumsl.mp.gov.in/" target="_blank" rel="noopener">RUMSL</a>) has issued tender to procure 400 MW firm and dispatchable grid-connected renewable power.</p>
<p>To meet the supply obligations, selected bidders must commission eight projects of 50 MW each totaling 400 MW. Each 50 MW project must consist:</p>
<p>i) 75 MW of solar to be commissioned on designated land within the Morena Renewable Park in Madya Pradesh</p>
<p>ii) energy storage systems (ESS) co-located with solar or installed outside the park and</p>
<p>iii) wind component to be developed outside the Morena Renewable Park</p>
<p>Bidders can decide the capacity they wish to offer for wind and ESS components.</p>
<p>Developers with untied renewable projects and ESS that are commissioned or under construction can also participate in the auction.</p>
<p>The last day to submit the bids is April 1, 2024. Bids will be opened the next day.</p>
<p>Bidders must submit an earnest money deposit of ₹982,000 (~$11,848)/MW of installed solar capacity + ₹1.26 million (~$15,202)/MW of wind component + ₹1.46 million (~$17,615)/MW of ESS capacity.</p>
<p>Selected bidders must furnish performance bank guarantee of ₹2.32 million (~$27,992)/MW of installed solar capacity + ₹3.16 million (~$38,127)/MW of wind + ₹3.66 million (~$44,160)/MW of ESS capacity installed.</p>
<p>They must sign a power purchase agreement (PPA) with MP Power Management Company and RUMSL.</p>
<p>Bidders must have a minimum net worth of ₹9.28 million (~$111,969)/MW of solar capacity installed + ₹12.64 million (~$152,510)/MW of wind + ₹14.64 million (~$176,641)/MW of ESS.</p>
<p>They must have a minimum annual turnover of ₹12.69 million (~$153,113)/MW of the quoted capacity during the financial year 2022-23 or seven days before the bid submission deadline.</p>
<p>Alternatively, they can present documents showing an internal resource generation capability in the form of profit before depreciation, interest, and taxes for a minimum ₹2.54 million (~$30,646)/MW of the quoted capacity.</p>
<p>Bidders can also have an in-principle approval letter from the lending institution or banks, committing a line of credit for a minimum of ₹3.17 million (~$38,248)/MW of the quoted capacity towards meeting the working capital requirement.</p>
<p>Selected bidders must supply the contracted capacity of the firm and dispatchable power from the project, keeping the availability of a minimum percentage during peak hours of the contracted capacity.</p>
<p>They may also source up to 5% renewable power on an annual basis from green market sources or bilateral agreements towards meeting their supply obligations.</p>
<p>RUMSL has mandated the use of solar modules listed in the Approved List of Models and Manufacturers (ALMM) and wind turbines listed in the Revised List of Models and Manufacturers for the projects.</p>
<p>In September, RUMSL <a href="https://www.mercomindia.com/rumsl-tender-750-mw-wind-solar-hybrid-projects/" target="_blank" rel="noopener">invited</a> bids to develop 750 MW wind-solar hybrid power projects in Madhya Pradesh on a build-own-operate basis.</p>
<p>Subscribe to Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.</p>


RUMSL Issues Tender for 400 MW Firm and Dispatchable Renewable Power

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