New bidding norms for power projects may not need EGoM nod
New Delhi: The new bidding norms being formulated for power projects may not require approval from the Empowered Group of Ministers, easing regulatory hurdles for developers.
"The Standard Bidding Documents or SBDs which are almost under completion would be implemented soon for the upcoming projects, except the Ultra Mega Power Projects (UMPPs)," a Power Ministry official told PTI.
"The new norms for Case I and Case II bidding for the projects would be in place soon. We do not require approval from the Empowered Group of Ministers (EGoM) for implementing the new SBDs.
"But as far as the UMPPs are concerned, we would discuss the matter first in the EGoM and then the implementation would take place," the official said.
There may not be separate set of documents for the UMPPs but the portions (in the revised) covering these projects will be discussed in the EGoM and would be implemented post their (EGoM's) nod.
Case I is an open bid where the developer has to decide for fuel and location and compete against any other developers in general.
In Case II bids, the developer is expected to bid on the basis of specific fuel and location where the specifics are provided by the Central or the state government whichever is calling for the bids.
Case II bidding is also called competitive bidding, the objective of which is to encourage competition among developers and procure power at minimum price.
The ministry, which has provisionally finalised the new SBDs, has proposed no change in the present bidding norms for the upcoming imported coal-fired power projects.
In September 2011, the Indonesian government linked their fuel prices to the international market, thereby making it a costlier proposition for the Indian power companies sourcing the fuel from the island nation.
As far as the domestic fuel-based projects are concerned, the ministry has proposed to have separate set of bidding for coal linkage and captive coal projects.
The draft documents have proposed that for the projects where the location of the plant is not specified, the bidding would be done among the domestic coal linkage holders who have uncontracted capacities under long term PPA (Power Purchase Agreement) through competitive bidding.