A seemingly scared NTPC has petitioned the power ministry to delay the inevitable-- the introduction of the mandatory tariff-based competitive bidding regime for award of power projects. The Tariff Policy calls for the end of the nomination route for the selection of developers for power projects by January 2011, unless extended by the central regulator.- NTPC is worried that its ambitions to be a 75 GW power company by the end of the 12th Plan (2017) will remain just a pipedream, in the face of increased competition from the arguably more efficient private sector, if the MoU regime lapses on schedule.
- In order to sway the Centre, the power company has asserted that doing away with the MoU route for project allocation would imply that the unallocated pool of CPSU power, presently used for meeting emergency needs, would no longer be available.
- While this would obviously imply lowered flexibility for the union government, it remains to be seen if this argument is enough to convince the Ministry of Power.
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