MAHAGENCO REL Tenders for 700 Acres Land for 175 MW Solar

Background and Context

MAHAGENCO Renewable Energy (MAHAGENCO REL) has officially invited bids to select an agency for the lease of 700 acres of land to facilitate the development of 175 MW of solar power projects. The project is structured as seven distinct 25 MW units. This initiative is part of a broader push by the state utility to accelerate renewable energy deployment across Maharashtra, following recent efforts to procure 10,000 acres of land for large-scale renewable energy parks.

Key Details

The scope of the contract involves a 28-year lease, extendable by an additional two years. Successful bidders are responsible for land development, identifying existing 132/33kV or 220/33 kV substations with sufficient evacuation margins, and securing 99% grid availability. Furthermore, the agency must handle Right-of-Way (RoW) clearances and execute pole line agreements for 33 kV lines connecting the land parcels to the substations. The power evacuation line route must be within 5 km of the land parcel, and the site must demonstrate a minimum global horizontal irradiation of 1,880 kWh/m2. Bidders are also required to conduct soil testing at a depth of 2.5 meters for every 10 hectares.

What This Means for EPCs and Developers

For EPC contractors and solar developers, this tender represents a critical entry point into the Maharashtra market. The financial eligibility criteria mandate a minimum average annual turnover of ₹100,000 (~$1,080) per acre and a positive net worth of at least ₹650,000 (~$7,024.36) per acre. Working capital requirements are also set at ₹100,000 per acre, though these can be supplemented with bank-backed lines of credit. Developers with experience in MSETCL grid connectivity approvals and large-scale land acquisition will hold a competitive advantage in this bidding process.

What Happens Next

The deadline for online bid submission is May 11, 2026, with the bid opening set for May 15, 2026. Interested parties must pay a non-refundable processing fee of ₹100,000 per 100-acre parcel. As the India renewable energy sector continues to scale, securing land and grid-ready sites has become the primary bottleneck for project commissioning. This tender serves as a strategic move by MAHAGENCO to de-risk project execution by pre-securing land and connectivity, ensuring a smoother transition to the construction phase for successful bidders.