The Power Ministry and the industry players have divergent views when it comes to finalisation of Standard Bidding Documents (SBDs) for case-II electricity generating stations.
For a second time in 13 days, the issue was taken up by the Advisory Committee on power headed by Jyotiraditya Scindia, Minister of State (Independent Charge) for Power, here.
“The meeting was inconclusive and we await further action by Power Ministry in this regard,” said a statement from Association of Power Producers (APP).
“We are discussing it and will come to you when I have something....we were focussed on the standard bidding documents,” Scindia told media persons after the meeting.
The Advisory Panel comprising Cyrus Mistry (Tata Power), Anil Ambani (Reliance ADAG), Chanda Kochar (ICICI Bank), and G.M.R. Rao (GMR Group) among others is expected to meet again on March 13.
On February 19, when the Advisory Group met for the first time, it reiterated the view that the existing SBDs be retained with appropriate changes to address the key issues from the past.
The existing SBDs were formulated on a build-own-operate (BOO) model, whereas the latest norms propose to have design, build, finance, operate, transfer (DBFOT) structure, which is not favoured by the industry.
According to industry, the DBFOT model with no provision to create security on project assets reduces the developer to the level of an engineering, procurement and construction (EPC) contractor.
Also, factors such as environment and forest clearances and delays associated with land acquisition are beyond the control of the developers. There is no provision to address significant delays in the development timeframe due to procurers not being able to perform their obligations, they say.
The power industry players feel that the ideal solution would be to tweak the existing documents instead of introducing a completely new framework as this may throw up new problems during the roll out process.
The non-finalisation of bidding documents are delaying award of 4,000 MW each ultra mega power projects (UMPP) in Odisha, Tamil Nadu and Chhattisgarh.
Scindia has also asked power sector players to find solutions to the key issues and revert to his Ministry.
“We have outlined four areas where I would like the Advisory Group to form sub-groups and come up with solutions. The four topics have been outlined today....The Advisory Group will now revert to me when they are ready with solutions on those topics,” Scindia said.
The key areas include National Tariff Policy, issue of hydro electric power, ensuring capacity addition, issue of coal and gas shortages and transmission.