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Home News Power Sector News Major power generators vie for MahaDiscom’s 2000MW , 25 years supply contract

Major power generators vie for MahaDiscom’s 2000MW , 25 years supply contract

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MSEDCLIndia's major private power generators, including Reliance Power, Adani Power, Essar Energy and the state-owned power trader PTC India, have evinced interest in supplying 2,000 mw to Maharashtra State Electricity Distribution Company (MahaDiscom). The commercial bid for the same will be opened next week. “The technical bids of the companies were opened and they have been asked to submit the supporting documents by the end of this week. The commercial bid of the qualified bidders will be opened next week,” Ajay Mehta, managing director of MahaDiscom said.

He said the winning bidders will sign long-term agreements with the state distribution unit for supplying around 2,000 mw for 25 years. “There could be more than one firm depending upon their capacity, which would be decided on the basis of comparative bids,” Mr Mehta added. The list of the bidders also has names like Indiabulls Power, JSW Energy, Emco Energy and Wardha Power Company.

In order to ensure serious participation and timely completion of commencement of power supply for the bidding process, the central government has added new clauses in the Electricity Act, 2003.

This includes the bidder acquiring at least 50% of the land and submitting the required proposal for environmental and forest clearance, apart from securing a firm arrangement of fuel and water. These strict guidelines may also bar the firms which do not have any power generation facility, said an industry analyst.

There is a separate provision for the power trader licensee. It would have to ensure that the entity with whom it has executed the power purchase agreement had completed the project preparatory activities, he added. A few of the companies have also been asked to submit supporting documents for their authorised signatory and composition of the company boards.

Source- Economic Times


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