LoU by IREDA, PFC & REC acceptable in lieu of EMD in RE tenders: R K Singh
As amendments to the Regular Bidding Guidelines (solar/wind), now acceptance of LoU from the IREDA, PFC & REC for EMD in tenders for the renewable energy projects in the country has been approved by R K Singh.
The New & Renewable Energy Minister RK Singh has given his approval to the proposal for acceptance of a Letter of Undertaking (LOU) from the IREDA, PFC & REC, in lieu bank Guarantees for the Earnest Money Deposit (EMD) in case of biddings/tenders for developing the Renewable Energy (RE) projects in the country.
The Ministry of New & Renewable Energy (MNRE) has conveyed the same to the renewable implementing agencies through a written letter.
As per the letter written, the MNRE has conveyed that SECI, NTPC, NHPC or any other implementing agency on behalf of MNRE (henceforth implementing agencies) may accept Earnest Money Deposit (EMD), in the form of Bank Guarantee(s) or ‘Payment on Order instrument’.
Moreover, the correspondence notes that the above decisions can be viewed and treated as amendments to the Regular Bidding Guidelines (SBG) (solar/wind).
Commenting on the same R K Singh stated that, “This decision of the Ministry of New & Renewable Energy will go a long way in ensuring Ease of Doing Business in RE sector as the developers will now have one more option in fulfilling the tender requirement.”
In this regard, the three non-banking financial institutions – IREDA, PFC or REC may issue the “Payment on Order” Letter(s) for payment on merit and after due diligence in accordance with their policies.
