Press Trust of India reported that the new bidding norms being formulated for power projects may not require approval from the Empowered Group of Ministers, easing regulatory hurdles for developers.

A Power Ministry official said that "The Standard Bidding Documents or SBDs which are almost under completion would be implemented soon for the upcoming projects, except the Ultra Mega Power Projects."

The official said that "The new norms for Case I and Case II bidding for the projects would be in place soon. We do not require approval from the Empowered Group of Ministers for implementing the new SBDs. But as far as the UMPPs are concerned, we would discuss the matter first in the EGoM and then the implementation would take place."

There may not be separate set of documents for the UMPPs but the portions covering these projects will be discussed in the EGoM and would be implemented post their nod.

Case I is an open bid where the developer has to decide for fuel and location and compete against any other developers in general.

In Case II bids, the developer is expected to bid on the basis of specific fuel and location where the specifics are provided by the Central or the state government whichever is calling for the bids.

Case II bidding is also called competitive bidding, the objective of which is to encourage competition among developers and procure power at minimum price.

The ministry, which has provisionally finalized the new SBDs has proposed no change in the present bidding norms for the upcoming imported coal-fired power projects.

Source - Press Trust of India

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