New bidding norms for thermal plants likely by year end

New bidding norms for thermal power projects are likely to be finalised by December 31, Power Secretary P Uma Shankar said today. "The Standard Bidding Documents (SBDs) are most likely to be finalised in two months time ... by December 31," Shankar told reporters.

The Power Ministry has provisionally finalised the new standard bidding documents. It has proposed no change in the present bidding norms for projects based on imported coal. As far as the domestic fuel-based projects are concerned, the ministry has proposed having separate set of bidding norms for coal linkage and captive coal projects.

The new documents have proposed that the projects where the location of the plant is not specified the bidding would be done amongst the domestic coal linkage holders who have uncontracted capacities under long term PPA (Power Purchase Agreement) through competitive bidding.

The use of surplus coal from a mine allotted to one particular project for another project has come under the scrutiny of CAG. Earlier, an Empowered Group of Ministers (EGoM) in a particular case had allowed use of surplus coal in 2008. The issue figured in a CAG report.