act 036 of 2003 : Guidelines for Procurement of Power under Pilot Scheme

Guidelines for Procurement of Power under Pilot Scheme

ACTNO. 36 OF 2003
04 October, 2018

Whereas, the Central Government is engaged in creating an enabling policy and regulatory environment for the orderly growth of generation of electricity in accordance with the provisions of the Electricity Act, 2003 (the Act );

Whereas, it is incumbent upon the Central Government, State Governments, Electricity Regulatory Commissions and the distribution licensees to promote competition in the procurement of electricity through competitive and transparent processes.

Whereas, the Central Government has decided to facilitate procurement of 2500 MW power for 3 (three) years (covered under medium term) from the generating companies having coal based Power Plants which are already commissioned and without having a power purchase agreement. The proposed scheme envisages procurement of Power through competitive bidding process to be conducted by PFC Consulting Limited, as Nodal Agency. Further, in order to facilitate the procurement and supply of power between the Successful Bidder(s) and Distribution Licensee(s), PTC India Limited will act as the Aggregator for the purpose of these Guidelines. The Aggregator will sign an Agreement for Procurement of Power with the Successful Bidder(s) and back to back Power Supply Agreement with the Distribution Licensee(s). The scheme is hereinafter referred to as the Pilot Scheme .

Whereas, the Central Government has, therefore vide its letter No. 23/17/2013- R&R (Vol-IV) dated 6th April, 2018 issued bidding documents comprising of (i) a single document as the Standard Bidding Document comprising both the Model Pilot Request for Qualification (the MPRFQ ) and the Model Pilot Request for Proposal (the MPRFP ); (ii) the Model Pilot Agreement for Procurement of Power (the MPAPP ); and (iii) the Model Pilot Power Supply Agreement (the MPPSA ) (collectively, the Model Pilot Bidding Documents ) to be adopted by the Nodal Agency for procurement of power from the power producers through a process of open and transparent competitive bidding through an electronic platform (DEEP e-Bidding Portal) based on offer of the lowest tariff. The link for the e-Bidding Portal shall be made available at , and shall also be available on the website of Ministry of Power () and PFC Consulting Limited ().

Now, therefore, in exercise of the powers conferred under Section 63 of the Electricity Act, 2003, the Central Government hereby notifies the Guidelines for Procurement of Power under Pilot Scheme for medium term through PFC Consulting Limited as Nodal Agency and PTC India Limited as Aggregator (the Guidelines ).

These Guidelines shall come into effect from the date of publication in the Official Gazette subject to the following terms and conditions:

1. The terms and conditions specified in the Model Pilot Bidding Documents referred to hereinabove shall, by reference, form part of these Guidelines and shall be treated as such.

2. The application of these Guidelines shall be restricted to projects from which power is procured in accordance with an Agreement for Procurement of Power for a period of 3 (three) years.

3. For the purpose of the Agreement for Procurement of Power, the tariff shall comprise of (i) a Fixed Charge of Rs. 0.01 (One Paisa only)/kWh and (ii) a Variable Charge, to be quoted by the Bidders in accordance with the Standard Bidding Document.

4. For the purpose of the Power Supply Agreement, the tariff shall comprise of (i) the tariff under the Agreement for Procurement of Power; and (ii) a trading margin. The trading margin shall be as approved by the Appropriate Commission for this Pilot Scheme.

5. The tariff determined through the DEEP e-Bidding process based on these Guidelines for the purpose of Agreement for Procurement of Power and Power Supply Agreement shall be adopted by the Appropriate Commission in pursuance of the provisions of Section 63 of the Act.

6. All the Bidders would be able to participate in the e-Bidding events on making payment of the requisite fees of Rs. 8000 (Rupees Eight Thousand) per MW for the total capacity sought under this Bidding Document to PFC Consulting Limited (PFCCL). After the completion of the bidding process, only successful Bidder(s) will have to pay these charges for the quantum allocated to each bidder. The balance amount will be refunded by PFCCL within seven (7) working days without any interest. The fee deposited by non-selected Bidder(s) will also be refunded by PFCCL within seven (7) working days of completion of the event without any interest.

7. Any deviation from the Model Pilot Bidding Documents shall be made by the Nodal Agency, Aggregator or Distribution Licensees only with the prior approval of the Appropriate Commission.

1. Ministry of Power, Vide Noti. No. 23/17/2013-R&R (Vol-IV), dated April 10, 2018 published in the Gazette of India, Extra., Part I, Section 1, dated 10th April, 2018, pp. 2-3, No. 128.