Non-Following Ease of Doing Business for MSME, New Entrepreneur, Start Ups in Govt Tenders

The Issue

To, 

Chief Engineer Commercial,
UHBVN, Room No.205,
Shakti Bhawan, Sector 6,
Panchkula, Haryana

Notice for Expression of Interest EOI No.2/CE/C-2019
Dated 12 Sep 2019 and 13 Sep 2019
Passed by the Chief Engineer, Commercial, Room No.205,
Shakti Bhawan, Sector-6, Panchkula, Haryana

Sir

1) Reference is made to EOI No.2/CE/C-2019 dated 12 Sep 2019 and 13 Sep 2019 vide which Chief Engineer Commercial (UHBVN) has sought Expression of Interest for Design, Supply, Installation, Testing & Commissioning including Warranty, spare parts and comprehensive maintenance of 1 kWp to 500 kWp Grid connected rooftop solar system in residential premises under GCRT Phase II of MNRE.
2) It may please be noted that through this EOI for empanelment of System Integrators, UHBVN & DHBVN have imposed very heavy and stringent embargos and restrictions upon Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs that are not able to participate or bid for empanelment. It is pertinent to mention here that these entities were instrumental in installing Grid Connected Rooftop Small Solar Power Plants under Phase I of MNRE whereas these entities have now been rendered ineligible due to imposing stringent restrictions like ‘prior experience’, ‘prior turnover’, ‘Earnest Money Deposit (EMD)’ and ‘Performance Bank Guarantee’ which is contrary to the existing policies in vogue pertaining to Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs and ease of doing business.
3) EOI of UHBVN & DHBVN for GCRT Phase II particularly paves way only for Solar Panel Manufacturers or big EPC Players who have experience of at least half Mega Watt and Private Limited Companies only thus depriving other solar vendors and integrators of getting empanelled in GCRT Phase II of MNRE.
4) The provisions of contradictory EOI are as follows:-
a) Eligibility criteria to Participate in EOI for empanelment in UHBVN & DHBVN :-
i) Bidder should be either a body incorporated in India under the companies’ act 1956 or companies act 2013 including any amendment thereto and engaged in the business of solar power (Para 2.1 Page 21 of EOI).
ii) Bidder should have installed and commissioned at least 2 grid connected solar PV power plant having capacity 10 kWp or above. (Para 2.2 Sl. No. 1 (b) Page 21 of EOI).
iii) The bidder should have cumulative experience of executing 500 kWp Grid Connected SPV power plants and off grid SPV power plants. (Para 2.2, Sl. No. 1 (c), Page of 21 EOI).
iv) In 1-10 kWp category, the bidder should have minimum average turnover in last 3 financial years (2016-2019) as Rs. 50 Lakhs. (Para 2.3 Sl. No. 1, Page 24 of EOI)
v) Reports on financial standing of the applicant including profit and loss statements, balance sheet and auditor’s reports of the past three years. (Para 2.4 Sl. No. (b) Sub-para (iii), Page 25 of EOI).
vi) The bidder shall furnish interest free earnest money (EMD) of Rs.2 Lakhs in the form of Demand Draft drawn in favour of A.O/CASH, UHBVN PANCHKULA, payable at Panchkula. (Para 3 (a), Page 26 of EOI).
vii) The successful enlisted firm shall arrange to furnish performance bank guarantee equal to Rs.10 lakhs with validity up to 90 days after expiry of warranty period of last system installed. (Para 4 (a), Page 26 of EOI).

5) Your attention is drawn towards that fact that UHBVN & DHBVN has not resorted to conduct pre bid meeting of all stake holders in connection with the said EOI of UHBVN & DHBVN for GCRT Phase II of MNRE for empanelment.
6) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs who have been instrumental in successfully implementation of GCRT phase I of MNRE through HAREDA, should have also been considered while setting the eligibility criteria in the said EOI of UHBVN & DHBVN for GCRT Phase II of MNRE.
7) The successful candidate after completion of Suryamitra program of Government of India conducted by NISE, Skill Council for Green Jobs (SCGJ) and other skill development agencies shall have vast opportunities for employment in the growing field of solar energy projects installation, operations and maintenance in India and abroad. Such individuals who have become new entrepreneur or MSME or have firms registered as Proprietorship / LLC / LLP / Pvt Ltd or Start Ups companies have been rendered without work and business due to this EOI of UHBVN & DHBVN for GCRT Phase II of MNRE.
8) The Government of India has taken various measures to improve the ease of doing business in respect of Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies and New Entrepreneurs. These entities can apply for government tenders. They are exempted from the “prior experience / turnover” criteria applicable for normal companies. Earlier, every time the government floated a tender, there was an eligibility condition either pertaining to prior experience or prior turnover. With these conditions now done away with, more entities as mentioned above are now eligible to be a part of the tendering process. The relaxation has been expanded to Central Public Sector Undertakings as well.
9) Easing public procurement is one of the major policies and it covers States’ initiatives to allow Startups to participate in State procurement. State Government support shall provide an equal platform to Startups vis-à-vis the experienced entrepreneurs or companies in public procurement.
10) Entrepreneur and Startup Policy 2017 of Govt. of India Para 4.3, page 20 under heading Preferential Procurement clearly states that “the Government shall encourage participation of Startups in the Government procurements by waiving off prior experience or turnover requirements so long as the product meets the desired specifications”.
11) Government of Haryana has done away with key qualification criteria of ‘turnover’ and ‘experience’ for Startups participating in public procurement process. The notification ‘Concessions/ Benefits in Public Procurement to Startups/ First Generation Entrepreneurs in the State’ was released by the State Department of Industries & Commerce on 3rd January 2019. According to the notification, startups will be treated at par with the MSEs in public procurement process subject to meeting other technical specifications as part of qualifying requirements for the procurement. The government has exempted the startups from payment of tendering fee and Earnest Money Deposit (EMD) subject to conditions as per eligibility.
12) In view of facts and circumstances stated above we request to revise the said EOI in line with provisions made for Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs / firms as per the current guidelines and norms set by Government of India and State Government of Haryana so that companies who were already instrumental in GCRT Phase I of MNRE also become eligible to participate in the revised EOI of UHBVN & DHBVN empanelment for GCRT Phase II of MNRE. It is requested that necessary arrangement be made for carrying out the revision in the said EOI while considering the following eligibility criteria for empanelment in UHBVN & DHBVN :-
a) Any Company or a body incorporated in India under the Companies Act, 1956 or 2013 including any amendment there to or proprietary / partnership firm is eligible for empanelment. The company or the body must be registered for business associate in solar sector. A copy of certificate of incorporation shall be furnished along with the Project Completion Report.
b) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs who have been instrumental in installing Grid Connected Rooftop and Small Solar Power Plants of 1 to 10 kWp under Grid Connected Rooftop Solar (GCRT) program Phase I automatically becomes eligible to participate and get empanelled in UHBVN & DHBVN for implementation of GCRT Phase II for capacity from 1 to 10 kWp.
c) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs who have been instrumental in installing Grid Connected Rooftop and Small Solar Power Plants of 1 to 10 kWp in GCRT Phase I are exempted from cumulative experience of executing 500 kWP in the subject EOI of UHBVN & DHBVN for Phase II.
d) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs who have been instrumental in installing Grid Connected Rooftop and Small Solar Power Plants of 1 to 10 kWp in GCRT Phase I are completely exempted from ‘prior experience’, ‘prior turnover’ and ‘Earnest Money Deposit (EMD) submission’ criteria in the subject EOI of UHBVN & DHBVN for GCRT Phase II.
e) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies and New Entrepreneurs are exempted from submitting 3 years of balance sheets and auditors reports in the subject EOI of UHBVN & DHBVN for GCRT Phase II.
f) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs as successful enlisted firm for GCRT Phase II and who have been instrumental in installing Grid Connected Rooftop and Small Solar Power Plants of 1 to 10 kWp in GCRT Phase I are completely exempted from performance bank guarantee equal to Rs.10 lakhs in the subject EOI of UHBVN & DHBVN for GCRT Phase II.

Thanking you sir,

In anticipation

Yours Sincerely

(Vipin Anand Ashodhiya)
Director,
DayRise Solar Enerdy Pvt Ltd


Copy To: (Request intervene for remedial measures)

1) Prime Minister's Office, South Block, Raisina Hill, New Delhi-110011.
2) Shri Raj Kumar Singh, Ministry of Power, Shram Shakti Bhawan, Rafi Marg, New Delhi - 110001
3) Shri Raj Kumar Singh, Ministry of New and Renewable Energy, Block-14, CGO Complex, Lodhi Road,New Delhi – 110003.
4) Shri Praveen Kumar, IAS, Chairman, Solar Energy Corporation of India, 1st Floor, D-3, A Wing, Prius Platinum Building District Centre, Saket, New Delhi – 110017.
5) Chief Minister’s Office, Haryana Civil Secretariat, 4th floor, Sector 1, Chandigarh – 160001.
6) Haryana Renewable Energy Development Authority, Akshay Urja Bhawan, Plot No-1, Sector 17, Opp Agarwal Bhavan, Panchkula, Haryana – 134109.
7) Haryana Electricity Regulatory Commission, Sector 4, Panchkula, Haryana – 134112.
8) Department of Industries & Commerce, 1st Floor, 30 Bays Building, Sector17, Chandigarh – 160017.
9) Ministry of Micro, Small and Medium Enterprises Udyog Bhawan, Rafi Marg, New Delhi – 110011.
10) Startup India,110, Vigyan Bhavan Annexe 001, Maulana Azad Road, New Delhi 110001
11) National Skill Development Corporation, 301-306, west Wing, Worldmark 1, Aerocity, New Delhi – 110037.

avatar of the starter
Anand AshodhiyaPetition StarterNew entrepreneur in Renewable Energy and trained Solar Developer / Integrator (I&C) instrumental in MNRE Grid Connected Rooftop Solar Installation Phase 1. Owns DayRise Solar Energy Company registered as Pvt Ltd.
This petition had 151 supporters

The Issue

To, 

Chief Engineer Commercial,
UHBVN, Room No.205,
Shakti Bhawan, Sector 6,
Panchkula, Haryana

Notice for Expression of Interest EOI No.2/CE/C-2019
Dated 12 Sep 2019 and 13 Sep 2019
Passed by the Chief Engineer, Commercial, Room No.205,
Shakti Bhawan, Sector-6, Panchkula, Haryana

Sir

1) Reference is made to EOI No.2/CE/C-2019 dated 12 Sep 2019 and 13 Sep 2019 vide which Chief Engineer Commercial (UHBVN) has sought Expression of Interest for Design, Supply, Installation, Testing & Commissioning including Warranty, spare parts and comprehensive maintenance of 1 kWp to 500 kWp Grid connected rooftop solar system in residential premises under GCRT Phase II of MNRE.
2) It may please be noted that through this EOI for empanelment of System Integrators, UHBVN & DHBVN have imposed very heavy and stringent embargos and restrictions upon Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs that are not able to participate or bid for empanelment. It is pertinent to mention here that these entities were instrumental in installing Grid Connected Rooftop Small Solar Power Plants under Phase I of MNRE whereas these entities have now been rendered ineligible due to imposing stringent restrictions like ‘prior experience’, ‘prior turnover’, ‘Earnest Money Deposit (EMD)’ and ‘Performance Bank Guarantee’ which is contrary to the existing policies in vogue pertaining to Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs and ease of doing business.
3) EOI of UHBVN & DHBVN for GCRT Phase II particularly paves way only for Solar Panel Manufacturers or big EPC Players who have experience of at least half Mega Watt and Private Limited Companies only thus depriving other solar vendors and integrators of getting empanelled in GCRT Phase II of MNRE.
4) The provisions of contradictory EOI are as follows:-
a) Eligibility criteria to Participate in EOI for empanelment in UHBVN & DHBVN :-
i) Bidder should be either a body incorporated in India under the companies’ act 1956 or companies act 2013 including any amendment thereto and engaged in the business of solar power (Para 2.1 Page 21 of EOI).
ii) Bidder should have installed and commissioned at least 2 grid connected solar PV power plant having capacity 10 kWp or above. (Para 2.2 Sl. No. 1 (b) Page 21 of EOI).
iii) The bidder should have cumulative experience of executing 500 kWp Grid Connected SPV power plants and off grid SPV power plants. (Para 2.2, Sl. No. 1 (c), Page of 21 EOI).
iv) In 1-10 kWp category, the bidder should have minimum average turnover in last 3 financial years (2016-2019) as Rs. 50 Lakhs. (Para 2.3 Sl. No. 1, Page 24 of EOI)
v) Reports on financial standing of the applicant including profit and loss statements, balance sheet and auditor’s reports of the past three years. (Para 2.4 Sl. No. (b) Sub-para (iii), Page 25 of EOI).
vi) The bidder shall furnish interest free earnest money (EMD) of Rs.2 Lakhs in the form of Demand Draft drawn in favour of A.O/CASH, UHBVN PANCHKULA, payable at Panchkula. (Para 3 (a), Page 26 of EOI).
vii) The successful enlisted firm shall arrange to furnish performance bank guarantee equal to Rs.10 lakhs with validity up to 90 days after expiry of warranty period of last system installed. (Para 4 (a), Page 26 of EOI).

5) Your attention is drawn towards that fact that UHBVN & DHBVN has not resorted to conduct pre bid meeting of all stake holders in connection with the said EOI of UHBVN & DHBVN for GCRT Phase II of MNRE for empanelment.
6) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs who have been instrumental in successfully implementation of GCRT phase I of MNRE through HAREDA, should have also been considered while setting the eligibility criteria in the said EOI of UHBVN & DHBVN for GCRT Phase II of MNRE.
7) The successful candidate after completion of Suryamitra program of Government of India conducted by NISE, Skill Council for Green Jobs (SCGJ) and other skill development agencies shall have vast opportunities for employment in the growing field of solar energy projects installation, operations and maintenance in India and abroad. Such individuals who have become new entrepreneur or MSME or have firms registered as Proprietorship / LLC / LLP / Pvt Ltd or Start Ups companies have been rendered without work and business due to this EOI of UHBVN & DHBVN for GCRT Phase II of MNRE.
8) The Government of India has taken various measures to improve the ease of doing business in respect of Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies and New Entrepreneurs. These entities can apply for government tenders. They are exempted from the “prior experience / turnover” criteria applicable for normal companies. Earlier, every time the government floated a tender, there was an eligibility condition either pertaining to prior experience or prior turnover. With these conditions now done away with, more entities as mentioned above are now eligible to be a part of the tendering process. The relaxation has been expanded to Central Public Sector Undertakings as well.
9) Easing public procurement is one of the major policies and it covers States’ initiatives to allow Startups to participate in State procurement. State Government support shall provide an equal platform to Startups vis-à-vis the experienced entrepreneurs or companies in public procurement.
10) Entrepreneur and Startup Policy 2017 of Govt. of India Para 4.3, page 20 under heading Preferential Procurement clearly states that “the Government shall encourage participation of Startups in the Government procurements by waiving off prior experience or turnover requirements so long as the product meets the desired specifications”.
11) Government of Haryana has done away with key qualification criteria of ‘turnover’ and ‘experience’ for Startups participating in public procurement process. The notification ‘Concessions/ Benefits in Public Procurement to Startups/ First Generation Entrepreneurs in the State’ was released by the State Department of Industries & Commerce on 3rd January 2019. According to the notification, startups will be treated at par with the MSEs in public procurement process subject to meeting other technical specifications as part of qualifying requirements for the procurement. The government has exempted the startups from payment of tendering fee and Earnest Money Deposit (EMD) subject to conditions as per eligibility.
12) In view of facts and circumstances stated above we request to revise the said EOI in line with provisions made for Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs / firms as per the current guidelines and norms set by Government of India and State Government of Haryana so that companies who were already instrumental in GCRT Phase I of MNRE also become eligible to participate in the revised EOI of UHBVN & DHBVN empanelment for GCRT Phase II of MNRE. It is requested that necessary arrangement be made for carrying out the revision in the said EOI while considering the following eligibility criteria for empanelment in UHBVN & DHBVN :-
a) Any Company or a body incorporated in India under the Companies Act, 1956 or 2013 including any amendment there to or proprietary / partnership firm is eligible for empanelment. The company or the body must be registered for business associate in solar sector. A copy of certificate of incorporation shall be furnished along with the Project Completion Report.
b) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs who have been instrumental in installing Grid Connected Rooftop and Small Solar Power Plants of 1 to 10 kWp under Grid Connected Rooftop Solar (GCRT) program Phase I automatically becomes eligible to participate and get empanelled in UHBVN & DHBVN for implementation of GCRT Phase II for capacity from 1 to 10 kWp.
c) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs who have been instrumental in installing Grid Connected Rooftop and Small Solar Power Plants of 1 to 10 kWp in GCRT Phase I are exempted from cumulative experience of executing 500 kWP in the subject EOI of UHBVN & DHBVN for Phase II.
d) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs who have been instrumental in installing Grid Connected Rooftop and Small Solar Power Plants of 1 to 10 kWp in GCRT Phase I are completely exempted from ‘prior experience’, ‘prior turnover’ and ‘Earnest Money Deposit (EMD) submission’ criteria in the subject EOI of UHBVN & DHBVN for GCRT Phase II.
e) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies and New Entrepreneurs are exempted from submitting 3 years of balance sheets and auditors reports in the subject EOI of UHBVN & DHBVN for GCRT Phase II.
f) Small Scale Solar Integrator / Vendor, Micro Small & Medium Enterprises (MSME), Start Ups Companies, New Entrepreneurs as successful enlisted firm for GCRT Phase II and who have been instrumental in installing Grid Connected Rooftop and Small Solar Power Plants of 1 to 10 kWp in GCRT Phase I are completely exempted from performance bank guarantee equal to Rs.10 lakhs in the subject EOI of UHBVN & DHBVN for GCRT Phase II.

Thanking you sir,

In anticipation

Yours Sincerely

(Vipin Anand Ashodhiya)
Director,
DayRise Solar Enerdy Pvt Ltd


Copy To: (Request intervene for remedial measures)

1) Prime Minister's Office, South Block, Raisina Hill, New Delhi-110011.
2) Shri Raj Kumar Singh, Ministry of Power, Shram Shakti Bhawan, Rafi Marg, New Delhi - 110001
3) Shri Raj Kumar Singh, Ministry of New and Renewable Energy, Block-14, CGO Complex, Lodhi Road,New Delhi – 110003.
4) Shri Praveen Kumar, IAS, Chairman, Solar Energy Corporation of India, 1st Floor, D-3, A Wing, Prius Platinum Building District Centre, Saket, New Delhi – 110017.
5) Chief Minister’s Office, Haryana Civil Secretariat, 4th floor, Sector 1, Chandigarh – 160001.
6) Haryana Renewable Energy Development Authority, Akshay Urja Bhawan, Plot No-1, Sector 17, Opp Agarwal Bhavan, Panchkula, Haryana – 134109.
7) Haryana Electricity Regulatory Commission, Sector 4, Panchkula, Haryana – 134112.
8) Department of Industries & Commerce, 1st Floor, 30 Bays Building, Sector17, Chandigarh – 160017.
9) Ministry of Micro, Small and Medium Enterprises Udyog Bhawan, Rafi Marg, New Delhi – 110011.
10) Startup India,110, Vigyan Bhavan Annexe 001, Maulana Azad Road, New Delhi 110001
11) National Skill Development Corporation, 301-306, west Wing, Worldmark 1, Aerocity, New Delhi – 110037.

avatar of the starter
Anand AshodhiyaPetition StarterNew entrepreneur in Renewable Energy and trained Solar Developer / Integrator (I&C) instrumental in MNRE Grid Connected Rooftop Solar Installation Phase 1. Owns DayRise Solar Energy Company registered as Pvt Ltd.

The Decision Makers

Uttar Haryana Bijli Vitran Nigam
Uttar Haryana Bijli Vitran Nigam
UTTAR HARYANA BIJLI VITRAN NIGAM (UHBVN)
Dakshin Haryana Bijli Vitran Nigam
Dakshin Haryana Bijli Vitran Nigam
Dakshin Haryana Bijli Vitran Nigam (DHBVN)
UHBVN
UHBVN
UTTAR HARYANA BIJLI VITRAN NIGAM (UHBVN)
DHBVN
DHBVN
Dakshin Haryana Bijli Vitran Nigam (DHBVN)
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