Bids invited to set up manufacturing zone for power, renewable energy

The government has invited bids for setting up a manufacturing zone for power and renewable energy sectors on a pilot basis.

The Union power ministry had earlier issued orders conveying implementation of a scheme for setting up such a manufacturing zone with a budgetary outlay of ₹400 crore over five years. The scheme aims to promote local manufacturing of latest clean and energy equipment technologies for minimising dependence on imports for power sector.

This is a five-year central sector scheme from 2022-23 to 2026-27.


The last date for submission of expression of interest is June 8, 2022, an official statement said. As per the bid documents, each interested party is required to submit a single proposal.

The bids will be evaluated based on low electricity and water charges, size of the proposed area, and connectivity of the zone. Priority will be given to proposed zones where the land is free from encumbrances, has proximity to ports, competitive electricity and water tariffs, and where the proposal earmarks an area of more than 150 acres.

The proposed funding would be kept flexible for supporting common infrastructure and testing facilities.

The selected proposer, or special purpose vehicle (SPV), will be responsible for preparation of detailed project report, obtaining clearances and land acquisition for the manufacturing zone.

"The state government will be responsible for providing encumbrances free land. The SPV will also be responsible for operation and management of assets created under the scheme," an official said.

According to the expression of interest, the grant will be released by the central government in four instalments - three of 30% each and the last of 10%.