Power Ministry yet to notify new bidding norms

The process for setting up the 4,000 MW Ultra Mega Power Project (UMPP) at Surguja in Chhattisgarh is delayed by another four months.

The Power Finance Corporation Ltd (PFC), the nodal agency for setting up of UMPPs, has extended the last date for prospective bidders who are keen to compete for the project. The date for submission of Request for Qualification (RfQ) has been pushed to April 3, 2013 from December 3, 2012. The RfQ qualifies the bidders for submitting price bids in the next step.

Reason for delay

The Power Ministry is yet to notify the Standard Bidding Documents (SBDs) for the 12th Five-Year Plan projects. The SBDs determine the framework and norms to build, own and operate power stations.

Till now, nearly 22 companies have submitted RfQs for the Surguja power project, the highest number so far for a UMPP. The Power Ministry has indicated that the SBDs would be notified by December end. Currently, it is holding discussions with several stakeholders to fine-tune the clauses.

The delay in notification of new norms has also pushed back the UMPP in Bedabahal in Odisha. Nearly 20 companies have submitted RfQs for the 4,000 MW power stations. However, things have not moved any further.

The companies that submitted RfQs for Odisha UMPP include Jindal Power, Sterlite, JSW Energy, Nalco, Signature Energy, Welspun, Tata Power, NTPC, Jaiprakash Power Ventures, Torrent Power, L&T, Adani Power and Torrent Power.

On November 5, the Ministry of Environment and Forests (MoEF) gave the terms of reference for setting up a second UMPP in Deogarh, Jharkhand.

The Government has awarded four UMPPs so far, out of the nine projects proposed.

Out of this, Tata Power has bagged the Mundra project, where it has synchronised three units of 800 MW each.

Three other projects at Sasan, Tilaiya and Krishnapatnam have been awarded to Reliance Power.


(This article was published on December 4, 2012)
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