UP Power mulls new tariff-based bidding to procure 2,000 mw

Moving ahead on its road map for arranging 25,000-mw additional power in next Five Year Plan, the Uttar Pradesh Power Corporation (UPPCL) has initiated a Case-I tariff based competitive bidding process for the procurement of 2,000 mw power on a long-term basis. UPPCL, as the authorised representative of the four electricity distribution licensees, Paschimanchal Vidyut Vitran Nigam, Madhyanchal Vidyut Vitran Nigam, Dakshinanchal Vidyut Vitran Nigam and Purvanchal Vidyut Vitran Nigam, is carrying out the bid process for a combined procurement of 2,000 mw, out of which 500 mw will be supplied to each discom. The scheduled delivery date of this bid is March 2012.

An official of the energy department said that the state government has decided to purchase a total of 5,000 mw of power through Case-I till 2014. ''This has been broken into two slots of 2,000 mw and 3,000 mw each. We intend to get the first slot of 2,000 mw by March 2012 and the remaining 3,000 mw by 2014,'' he said.

Under Case I procurement, the seller will be responsible for arranging for land, water, fuel and all the statutory clearances himself. The government would procure power from the private sector irrespective of the generation plant, location, technology or specifications.In case of procurement under Case II, the state government arranges for the land, provides water linkages, arranges fuel linkages and also obtain all the statutory clearances for the project.''The minimum bid capacity is 50 mw'' said the official, adding that the last date for submitting the request for qualification (RFQ) is July 16.

It may be mentioned that the UP government has recently granted approval to a three way mechanism recommended by the energy task force (ETF) headed by the state's chief secretary, to identify and establish power projects in the state with a view to accomplish the highly ambitious goal of achieving additional capacity of 25,000 mw by the end of the 12th Five Year Plan. The first way is to facilitate the generation of private power through case II method or through the public private partnership (PPP) route on build own operate (BOO) model. Under this method, the financial burden will solely rest on the private partner and government will only facilitate in specifying and arranging the resources like location, land, fuel (coal), water, environmental clearances etc., by creating special purpose vehicles and ensuring transparent and fair competitive bidding process. The capacity addition target set for this route is 15,000 mw. Projects that are being developed under Case II are the 1,320 mw Jawaharpur Thermal Power Plant in Etah, 1,980 mw Dopaha Thermal Power Plant in Sonebhadra districts and the 1,980 mw Lalitpur Thermal Power Plant.Under Case II method of procuring power, while tenders for 2,000 mw have been already floated, the consultant selection procedure is under process for managing the bidding process for the remaining 3,000 mw.