Private power producers have approached the government for changes in the extant bidding guidelines for electricity generation projects to insulate themselves from financial risks.
"Private power producers have sought key changes in the bidding guidelines for power projects to insulate developers from unforeseen business risks," Minister of State for Power KC Venugopal said in the Lok Sabha today.
He said the power companies have requested the ministry to tweak certain bidding guidelines.
"The changes in the bidding guidelines sought by power producers include the fuel availability risk of domestic coal, the price risk due to change in prices of the fuel in coal-exporting countries, delay or denial in environment and forest clearance pertaining to coal blocks, etc," Venugopal said.
A committee has been set up in the Ministry of Power to examine the proposals received from stakeholders, he said.
The installed power generation capacity in the country stood at 1,82,690 MW as of October 31, 2011. Thermal power projects with a combined capacity of 78,545 MW and 15,707 MW of hydro power projects are under construction in the country and are likely to be commissioned during the 11th (2007-12) and 12th Five-Year Plan (2012-17), he added.
In order to attract foreign investment in the power sector, up to 100% FDI is permitted in power generation (except atomic plants), transmission, distribution and power trading projects.