The Ministry of Petroleum and Natural Gas (MoPNG) has asked the Ministry of Power (MoP) to require Case-II bidding for all gas-based power plants that are expected to come up in the XIIth Plan and are seeking gas allocation from the petroleum ministry.
- As of now, Case-II bid projects have been granted a 50% quota in all available gas in the XIIth Plan, while Independent Power Projects(IPP), with no tariff-based bidding requirements, are granted the other 50%.
- The petroleum ministry feels that, in such a scenario, IPPs can take undue advantage, seeking allocation under their reserved category as well as under the Case-II regime, which is optional for them. This would severely impact the allocation priorities of the government.
As an alternative, - In Case-II bidding, a central or state utility calls for bids on the lowest power tariffs, with a known source of fuel. The winning bidder is granted the opportunity to execute the project and supply the power to the concerned entity. The prestigious UMPPs have been bid out in this manner.
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