New Delhi, Sept. 5: Fresh bids for two 4,000 megawatt (MW) power plants — at Bedabahal in Odisha and Cheyyur in Tamil Nadu — are likely to begin by the middle of this month.
The bidding will follow the new norms that allow firms to pass through the fuel cost but place a bar on the import of equipment.
“The requests for qualification (RFQs) for Bedabahal and Cheyyur are planned to be issued by the middle of this month. Retendering is being done to accommodate the changes in the bidding norms,” senior officials of Power Finance Corporation said.
PFC is the nodal agency to implement the mega power projects.
An empowered group of ministers, headed by defence minister A.K. Antony, had recently cleared a proposal to change the bidding norms.
Under the new norms, developers will not have ownership of the land and the plants. This implies that banks won’t have the security of either the land or the project assets.
The government has assured the developers that it will ask the Reserve Bank of India to facilitate funding.
The developers will have to buy their equipment from domestic suppliers such as Bhel, L&T and and Alstom-Bharat Forge. The move comes against the backdrop of local power equipment makers facing tough market conditions because of overall economic sluggishness and cheaper Chinese imports.
The projects will have to sell at least 80 per cent of the electricity on long-term agreement to discoms (distribution companies). The government proposes to keep free 15-20 per cent of the capacity in each project for merchant sales.
The selection process is a two-step one, with initial bids to be followed by final bids from shortlisted companies.
“It can take anywhere between two to three months for the evaluation of these initials bids and the qualifying companies would be asked to bid during the final round,” officials added.