Punjab Power Utility Seeks Massive Supply of Green Energy Pellets!
Hello Businessman
The Punjab State Power Corporation Limited (PSPCL) is taking a big step toward using more sustainable energy by issuing a major online tender (E-tender). They are looking to buy a specific type of clean fuel called Agro Residue-based Biomass Non-Torrefied Pellets for their thermal power plant located at GHTP, Lehra Mohabbat.
This procurement effort shows PSPCL’s commitment to transforming agricultural waste into usable power.
Key Facts about the Pellets:
- Base Material: The pellets must be made from crop residue (wood-based pellets are not allowed). Accepted materials include stubble, straw, mustard seed shell, pine needle, elephant grass, and bamboo by-products.
- Fuel Quality: The fuel quality is measured by the Gross Calorific Value (GCV), which should be between 2800 and 4000 Kcal/Kg.
- Moisture Limit: For quality assurance, the Total Moisture should not be more than 14%. If the moisture is too high (more than 14%), a weight deduction will be applied. If the moisture exceeds the rejection level (more than 14% upon unloading inspection), the consignment will be rejected entirely.
Scale of the Deal
- Annual Need: The power plant needs a total quantity of approximately 2,92,000 Metric Tons (MT) over one year.
- Daily Supply: The estimated daily requirement is 800 MT.
- Supplier Quotas: Individual bidders must offer to supply a minimum of 50 MT per day and a maximum of 150 MT per day. These quantities must be quoted in multiples of 10 (e.g., 50 MT, 60 MT, 70 MT, etc.).
Who Can Supply the Pellets? (Key Rules for Bidders)
To participate, firms must meet specific requirements focused on local manufacturing and sourcing:
- Local Plant Required: Bidders must own their biomass non-torrefied pellets manufacturing plant (it cannot be leased) located within the state of Punjab.
- Environmental Clearance: The firm must submit a Consent to Operate (CTO) certificate from the Punjab State Pollution Control Board for their plant.
- Local Sourcing: At least 50% of the raw material (stubble/crop residue) must be sourced from Punjab.
- How the Online Bidding Works (The E-Tender Process)
- The bidding process is entirely online (e-tendering) and is organized into three mandatory parts:
- Earnest Money Deposit (EMD): This is the security deposit, typically Rs. 20,00,000/-. If the bid value is less than Rs. 5 lakh, no EMD is required. Proof of EMD submission must be uploaded online.
- Commercial and Technical Conditions: This includes proving financial and technical ability, such as submitting technical specifications, drawings, GST registration, and HSN Code. If a new firm has never supplied these items, a work appraisal will be carried out at their cost (Rs 25,000 plus GST extra if works are in Punjab) before moving forward.
- Price Bid: This is the actual electronic price submission.
Crucially, the Price Bid (Part-III) is only opened if the supplier successfully clears Part I (EMD) and Part II (Technical/Commercial conditions).
This tender is like a massive marketplace where the power company is the buyer, and multiple local suppliers compete fiercely, even lowering their prices in a real-time online auction, to ensure Punjab gets a reliable, affordable supply of green fuel made from farm waste.
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