APTransco cuts bid capacity for long-term purchase

The state power utility has initiated the process of procurement of 2,400 Mw thermal power for which it would enter into a 25-year purchase agreement

The Andhra Pradesh Transmission Corporation (AP Transco) has extended the deadline for submission of applications from prospective developers to December 15 for supply of power on a long-term basis.

The state power utility has initiated the process of procurement of 2,400 Mw of thermal power for which it would enter into a 25-year purchase agreement with the power developers through the usual bidding process.

"We want to start buying power under this procurement round from June, 2016," K Vijayanand, chairman and managing director of APTransco said.

Based on the feedback received during the recent meeting with the prospective developers, the minimum bid capacity has been reduced to 8 per cent (192 Mw) from the earlier 20 per cent (480 Mw), according to a release.

The plants need to have coal linkage from Coal India Limited (CIL) supplemented by imported coal and should have COD (Commercial Operation Date) before December, 2016, it said.