EGoM yet to decide bidding norms for UMPPs

Bidding process for power projects is being revised to mitigate risk from escalation of coal prices

The Empowered Group of Ministers (EGoM) is yet to finalise bidding norms for ultra mega power projects as some issues remain to be sorted out.

"There are some issues which need to be further discussed," said a source who attended the meeting today, without elaborating. No date was set for the next meeting.

Ultra mega power projects (UMPPs) are coal-based generation projects with an average capacity of 4,000 MW. The bidding process for power projects is being revised to mitigate the risk from escalation of coal prices.

The new norms will apply to Case-II projects, which includes UMPPs, where the location of the plant and fuel to be used are decided before competitive bidding starts. They will also apply in Case-I projects, where developers decide on the location, fuel and technology to be used.

The decision is expected to speed up the process of inviting bids for UMPPs proposed at Odisha (Bedabahal) and Tamil Nadu (Cheyyur).

The government has so far allotted four UMPPs. The first at Mundra in Gujarat was awarded to Tata Power, which said in March it had commissioned the plant. Reliance Power bagged the others -- Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand).

The new standard bidding documents (SBDs) for Case-I projects are being drafted by the Power Ministry.

Power Minister Jyotiraditya Scindia will hold inter- ministerial consultations on Case-I norms, which will be taken to an advisory group and then submitted to the EGOM for final approval.

The advisory group comprises power sector bigwigs, including Cyrus Mistry, Chairman of Tata Sons, Anil Ambani, Chairman of Reliance Power, and G M Rao, Chairman of the GMR Group.