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Bidding for Profitability
- Anmol Singh Jaggi
Adversity is a great teacher, but this
teacher makes us pay dearly for its
instruction; and often the profit we derive,
is not worth the price we paid.

                            -   Elizabeth Hardwick
                                An American Writer
Why Reverse Bidding?

      NSM Phase I      NSM Phase II




        150 MW            350 MW




       1700 MW

                         2500 MW
Factors for Bidding



                                     Costs



            Size | Contractor | Technology | Procurement Date | Land




           Generation                                     Financing




        Land | Technology                               Interest | Tenor
Expected Generation



   Costs

               Parameter          Bid Difference


               Size of Project    80 paise

               EPC Contractor     64 paise

               Technology         22 paise

               Procurement Date   24 paise

               Land               16 paise

               Total              206 paise
Cost of Setting Solar Project



  Generation

                  Parameter     Bid Difference


                  Land          119 paise

                  Technology    64 paise

                  Total         183 paise
Cost of Setting Solar Project



  Financing

                  Parameter     Bid Difference


                  Interest      82 paise

                  Tenor         103 paise

                  Total         185 paise
Comparison




          135
                           103
                                     86



          Land            Tenor   Technology




             82            80          64


         Interest          Size   EPC Contractor

             24

       Procurement Date
Experience Snapshot

             Gensol Consultants is the exclusive Lender’s Engineer to
             L&T Infra Finance. Total portfolio of Solar Power Projects
             under advisory at Gensol Consultants is 250 MW.


 Owner’s Engineer:                                       Lender’s Engineer:
 •   60 MW (4 Projects) – Haryana Power Generation       •   25 MW – Sun Group, Gujarat
     Corporation Ltd, Haryana Govt. enterprise           •   25 MW – Sun Edison, Gujarat
 •   25 MW – Alex Astral Solar Power Ltd., Gujarat       •   10 MW – Greeninfra Solar, Gujarat
 •   5 MW – Konark Group, Gujarat                        •   20 MW – PLG Power, Gujarat
 •   5 MW – Swiss Park Vanijya Pvt Ltd, Rajasthan        •   6 MW – Indiabulls Power, UP & Maharashtra
 •   5 MW – OPG Energy Pvt Ltd, Rajasthan                •   10 MW – Millenium Synergy, Gujarat
 •   5 MW – Alex Spectrum Radiation Pvt Ltd, Rajasthan   •   5 MW – ESP Urja, Gujarat

 Detailed Designing                                      Feasibility Analysis & DPR:
 •   20 MW – Client Confidential, Gujarat                •   5 MW – RSB Energy, Orissa
 •   8.5 MW – Jain Irrigation, Maharashtra               •   5 MW – Chemtrol Industries, Rajasthan
 •   1 MW L&T ECC, Rajasthan                             •   5 MW – Shashi Kiran Group, Karnataka

 Detailed Design Vetting                                 •   2 MW – Shri Bhagirathi Textiles Ltd
 •   2 MW – R V Akash Ganga, Uttarakhand
Gensol Consultants Pvt Ltd

   Western Business Unit:    Northern Business Unit:
   205 - 206,                105-106, Infotech Centre,
   Sarthik II,               Plot No. 14/2,
   S.G. Highway,             Opp. Amdoc's Building,
   Ahmedabad - 380015        Old Gurgaon-Delhi Road,
   Gujarat, India            Gurgaon - 122001,
                             Haryana, India




   Southern Business Unit:   E:    solar@gensolconsultants.com
   503, 5th Floor,           W:    www.gensolsolar.com
   Benaka Towers,            Ph:   +91 79 39122200
   17th Main D,              F:    +91 79 39122220
   Indranagar,
   Bangalore – 560075
   Karnataka, India

More Related Content

Bidding For Profitability

  • 1. Bidding for Profitability - Anmol Singh Jaggi
  • 2. Adversity is a great teacher, but this teacher makes us pay dearly for its instruction; and often the profit we derive, is not worth the price we paid. - Elizabeth Hardwick An American Writer
  • 3. Why Reverse Bidding? NSM Phase I NSM Phase II 150 MW 350 MW 1700 MW 2500 MW
  • 4. Factors for Bidding Costs Size | Contractor | Technology | Procurement Date | Land Generation Financing Land | Technology Interest | Tenor
  • 5. Expected Generation Costs Parameter Bid Difference Size of Project 80 paise EPC Contractor 64 paise Technology 22 paise Procurement Date 24 paise Land 16 paise Total 206 paise
  • 6. Cost of Setting Solar Project Generation Parameter Bid Difference Land 119 paise Technology 64 paise Total 183 paise
  • 7. Cost of Setting Solar Project Financing Parameter Bid Difference Interest 82 paise Tenor 103 paise Total 185 paise
  • 8. Comparison 135 103 86 Land Tenor Technology 82 80 64 Interest Size EPC Contractor 24 Procurement Date
  • 9. Experience Snapshot Gensol Consultants is the exclusive Lender’s Engineer to L&T Infra Finance. Total portfolio of Solar Power Projects under advisory at Gensol Consultants is 250 MW. Owner’s Engineer: Lender’s Engineer: • 60 MW (4 Projects) – Haryana Power Generation • 25 MW – Sun Group, Gujarat Corporation Ltd, Haryana Govt. enterprise • 25 MW – Sun Edison, Gujarat • 25 MW – Alex Astral Solar Power Ltd., Gujarat • 10 MW – Greeninfra Solar, Gujarat • 5 MW – Konark Group, Gujarat • 20 MW – PLG Power, Gujarat • 5 MW – Swiss Park Vanijya Pvt Ltd, Rajasthan • 6 MW – Indiabulls Power, UP & Maharashtra • 5 MW – OPG Energy Pvt Ltd, Rajasthan • 10 MW – Millenium Synergy, Gujarat • 5 MW – Alex Spectrum Radiation Pvt Ltd, Rajasthan • 5 MW – ESP Urja, Gujarat Detailed Designing Feasibility Analysis & DPR: • 20 MW – Client Confidential, Gujarat • 5 MW – RSB Energy, Orissa • 8.5 MW – Jain Irrigation, Maharashtra • 5 MW – Chemtrol Industries, Rajasthan • 1 MW L&T ECC, Rajasthan • 5 MW – Shashi Kiran Group, Karnataka Detailed Design Vetting • 2 MW – Shri Bhagirathi Textiles Ltd • 2 MW – R V Akash Ganga, Uttarakhand
  • 10. Gensol Consultants Pvt Ltd Western Business Unit: Northern Business Unit: 205 - 206, 105-106, Infotech Centre, Sarthik II, Plot No. 14/2, S.G. Highway, Opp. Amdoc's Building, Ahmedabad - 380015 Old Gurgaon-Delhi Road, Gujarat, India Gurgaon - 122001, Haryana, India Southern Business Unit: E: solar@gensolconsultants.com 503, 5th Floor, W: www.gensolsolar.com Benaka Towers, Ph: +91 79 39122200 17th Main D, F: +91 79 39122220 Indranagar, Bangalore – 560075 Karnataka, India