Power capacity addition to be 17,461 Mw

Industry wants more discussion on bid documents in advisory panel meet, ministry agrees

India is set to add 17,461 Mw of power capacity this financial year (2012-13), the power ministry has announced. This would be the second-highest achievement in a year after the 20,500 Mw addition in 2011-12.

“We have already added 12,461 Mw this year so far. An additional 5,000 Mw is expected to come on stream by March,” minister Jyotiraditya Scindia said. He was addressing journalists after chairing the first meeting of the ministry’s advisory panel comprising industry heavyweights.

Tata Group Chairman Cyrus Mistry, Reliance Group Chairman Anil Ambani and ICICI Bank Managing Director Chanda Kochchar were among members of the advisory group who attended today’s meeting.

Power Secretary P Uma Shankar said the industry leaders talked on many issues, including standard bid documents (SBDs). “They asked for another round of discussion, saying there was some uneasiness on the matter. This was allowed. Also, the members raised concerns over the recent environment ministry directive disallowing low GCV (gross calorific value) coal in projects.”

The ministry is reviewing SBDs for projects. The industry wants, in the new SBDs, provisions to take into account the impact of change in the law in coal exporting nations and addressing material adverse conditions through an enabling provision for review of contract conditions. Scindia said approval of the empowered ministerial panel on revised SBDs would be sought only after another round of discussion.

The minister said government-owned NTPC, largest power generator in the country, would commence operations in at least one of its six captive mines within three months. He said the resettlement and rehabilitation plan was recently approved.

Also, power utilities have signed fuel supply agreements with Coal India Ltd, the near-monopoly producer, for 21,000 Mw of an overall 60,000 Mw capacity awaiting assured coal supplies, he added.

“The difficult and discriminatory FSA clauses are resolved. NTPC would sign agreements for 14,000 Mw and others will follow,” said Scindia.

He said the ministry planned to extend complete independence to Power Operation System Corporation, a Power Grid subsidiary managing national grid operations, and to convert it into a technical regulator. Scindia did not share details.