KSEBOA - KSEB Officers' Association

May 21st
Text size
  • Increase font size
  • Default font size
  • Decrease font size
Home News Power Sector News Powermin to finalise norms for short-term power procurement

Powermin to finalise norms for short-term power procurement

Hits smaller text tool iconmedium text tool iconlarger text tool icon
PFCThe Power Ministry is likely to come out with competitive bidding guidelines for short-term procurement of electricity by distribution entities soon. The new norms for a procurement period of less than one year would be framed to ensure better transparency in the process and also to bring down the overall power cost for the consumers. "We have discussed the proposed norms for short-term procurement of power with concerned entities. We expect to finalise the guidelines for the same soon," a senior Power Ministry official said.

Apart from increasing transparency, the competitive bidding guidelines would also help in standardising the whole process, he said.

Currently, the short-term power market comprises about 10 per cent of the total electricity procured in the country. At present, the per unit electricity tariff through short-term procurement is around Rs 4.

State-run Power Finance Corporation (PFC) had come out with draft guidelines for short-term power procurement by distribution licensees through tariff-based bidding process. Power exchanges are not included in the same.

As per the draft norms, the minimum time-frame of ten days should be given for the completion of the bidding process. However, an official of a leading power trading company opined that standard norms could restrict short-term power market and is unlikely to bring down the tariffs.

Going by trends, the short-term power procurement rate is around Rs 4 per unit and has come down from Rs 6-7 range in the past few years, the official added.

Source- Hindu


Add comment

Security code

Random Videos

You need Flash player 6+ and JavaScript enabled to view this video.
Title: Power Quiz 2015 Final - Part-1

Latest Comments


Reference Book


Reference Book on Power

Electrical Engineering-- D' 1/4 Size Hard bound-- 1424 Pages-- Just Rs.1000/- only &n...

Visitors Counter

mod_vvisit_counterThis Month95616
mod_vvisit_counterLast Month132633

Online Visitors: 98
Time: 20 : 47 : 33