The Union power ministry has launched a scheme for power procurement worth 4,500 mw under Paragraph B (v) of the SHAKTI Policy.
An official government release said that the power procurement will be on competitive basis for a period of five years on finance, own and operate (FOO) basis, under Section B (v) of the SHAKTI Policy. Issued by the Union coal ministry, the SHAKTI Policy aims at transparency in coal allocation for power plants and other user industries. SHAKTI stands for Scheme for Harnessing Koyla (Coal) Transparently in India.
PFC Consulting Ltd, as the nodal agency, has invited bids for the supply of 4,500 MW. Supply of electricity will commence from April 2023. Ministry of Coal has been requested to allocate around 27 MTPA for this.
The utilities that have evinced interest for the scheme are Gujarat Urja Vikas Nigam Ltd, Maharashtra State Electricity Distribution Company Ltd, Madhya Pradesh Power Management Company Ltd, New Delhi Municipal Corporation and Tamil Nadu Generation and Distribution Corporation Ltd.
The last date for the bid submission is December 21, 2022.
It is for the first time that bidding is being carried out under B(v) of Shakti scheme. Also, revised PPA for medium term is being used in this bidding.
This scheme is expected to help the states that are facing power shortage and also help generation plants to increase their capacities.
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The Ministry of Power had notified the guidelines for procurement of power on FOO basis under paragraph B (v) of the SHAKTI Policy on October 25, 2022. The methodology for coal allocation as per provisions of Para B (v) of SHAKTI policy was issued on May 11, 2022.
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