M.P. Power Management Company Limited (MPPMCL), acting on behalf of Madhya Pradesh’s three power distribution companies (Discoms), has invited bids for the development of a standalone 625 MW/1250 MWh Battery Energy Storage System (BESS) in the state. The project is aimed at strengthening grid reliability, supporting peak power demand, and enabling greater integration of renewable energy into the state’s electricity network.
The procurement will be carried out under the Build, Own, and Operate (BOO) model through a competitive bidding process using a single-stage, two-envelope e-tender system. Developers selected through the bidding process will be responsible for setting up, owning, operating, and maintaining the battery storage facilities during the contract period.
The total capacity of 625 MW/1250 MWh has been divided into three separate units. Two projects will each have a capacity of 250 MW/500 MWh, while the third project will be developed with a capacity of 125 MW/250 MWh. The selected bidders will be required to arrange suitable land, develop the complete project infrastructure, and establish connectivity with the State Transmission Utility (STU) substations. They will also be responsible for ensuring that each battery storage system can complete two full charging and discharging cycles every day, helping the state manage electricity demand during both peak and off-peak hours.
To improve project viability and encourage investment, the government will provide Viability Gap Funding (VGF) support. The financial assistance will be available at up to INR 18 lakh per MWh, reducing the capital burden on project developers and supporting the deployment of large-scale battery storage infrastructure.
According to the Notice Inviting Tender (NIT), the bidding process has already begun. The bid documents became available for download from July 4, 2026. Interested bidders can submit pre-bid queries until July 13, 2026, at 10:00 AM. A pre-bid meeting will also be held on the same day at 12:00 PM at the MPPMCL Regional Office in Bhopal to address queries from prospective participants.
The last date for online submission of bids has been fixed as July 30, 2026, by 3:00 PM. Physical copies of the required documents must be submitted by August 3, 2026, before 3:00 PM. The technical and commercial bids will be opened on August 4, 2026, starting at 3:00 PM.
The tender specifies several financial requirements for bidders. The cost of the bid document is INR 29,500, including GST, while the non-refundable bid processing fee is INR 15 lakh plus applicable taxes. An Earnest Money Deposit (EMD) of INR 2.2 lakh per MW of the quoted capacity must also be submitted through approved financial instruments such as bank guarantees or insurance surety bonds.
After the award of the project and before signing the 12-year Battery Energy Storage Purchase Agreement (BESPA), successful bidders will have to furnish a Performance Bank Guarantee (PBG) of INR 11 lakh per MW for each awarded location. However, Micro and Small Enterprises (MSEs) with valid Udyam registration are exempt from paying the bid document fee, processing fee, and EMD, providing additional support for eligible smaller businesses to participate in the tender.
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