New Delhi, Oct. 15: The government has eased qualification criteria for companies that plan to bid for the 4,000 mega watt power plants in Odisha and Tamil Nadu.
Prospective bidders can now include as past experience in their CVs projects whose capital cost is 5 per cent of the power plant’s project cost against 10 per cent earlier.
“We took record of the slow down that impacted project implementation over the past five years and also the fact that power plants require huge capital unlike other infrastructure projects such as roads and highways. We decided to change the clauses based on industry response,” power ministry additional secretary Ashok Lavasa said at a pre-bid conference.
He said expenditure incurred by the companies on projects in the past seven years would be counted against five years earlier to qualify for the projects.
Under the 5 per cent capital cost norm, bidders with infrastructure projects worth Rs 1,260 crore in their experience instead of Rs 2,520 crore will be able to participate in bidding for the Bhedabahal power project in Odisha.
Similarly, a project worth Rs 1,210 crore can be included by the bidders in their CVs against Rs 2,420 crore earlier for the Cheyyur power plant in Tamil Nadu.
Each UMPP, which has a capacity of 4,000 megawatts, is estimated to cost Rs 25,000 crore.
The Cheyyur UMPP in Tamil Nadu is based on imported coal, while the Odisha project will use domestic coal.
“Total fuel cost of the project will be finalised at the RFP (request for proposal) stage instead of the RFQ (request for qualification) because by then the companies would have made up their minds about how to move forward,” he said.
“The fuel cost of Odisha projects will be specified after detailed exploration of the three attached coal blocks. Coal cost for Cheyyur project will also be decided at a later stage,” Lavasa said.