The proposal is for a 4,500 MW production and supply of electricity through PPP on FOO basis
PFC Consulting (PFCCL) has invited proposals to procure 4,500 megawatts (MW) of power through tariff based competitive bidding (TBCB) for medium term procurement.
The company, which is a subsidiary of the State-run Power Finance Corporation (PFC), floated the proposal on Monday. Bidders can seek clarification on the procurement terms till December 1. The last date for submitting bids is December 21 and the bids will be opened on the same day.
The proposal is for Gencos, for a contracted capacity of 4,500 MW, for production and supply of electricity for a period of 5 years through the Public Private Partnership (PPP) on a Finance, Own and Operate (FOO) basis. The power supply is to start from April 2023.
The utilities will ink a power purchase agreement (PPA) with the successful bidder. PFCCL intends to pre-qualify and short-list suitable applicants, whose bid will be opened on December 21 for awarding the contract through an open competitive bidding process.
“The scope of work will broadly include operation and maintenance of the power station and supply of electricity, in accordance with the terms of the PPA,” the proposal said. The bidder will have to quote a tariff comprising Base Fixed Charge and Base Variable Charge for each source of coal. The cost of fuel and the transportation shall form part of the Base Variable Charge.
The Base Fixed Charge and Base Variable Charge shall each be at least 35 per cent of the quoted tariff. The bid for the project will consist of Base Fixed Charge and Base Variable Charge. The bidder seeking the lowest tariff shall be the selected bidder.
The responsibility for arranging access, payment of transmission charges and for bearing losses in respect of inter-State transmission shall be that of the utility. Responsibility for arranging access, payment of transmission charges and for bearing losses in respect of intra-State transmission shall be that of the supplier.