THE MINISTRY of Power has launched a scheme to procure electricity aggregating to 4,500 MW for five years under the SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy.
"[The] Ministry of Power kicks off a scheme for procurement of aggregate power of 4,500 MW on [a] competitive basis for five years on Finance, Own and Operate (FOO) basis under B (v) of SHAKTI Policy," an official release said.
The ministry designated PFC Consulting Ltd, a wholly-owned subsidiary of Power Finance Corporation Ltd, as the nodal agency for the same.
Under the scheme, PFC Consulting invited bids for the supply of 4,500 MW. The electricity supply is expected to begin in April 2023. Meanwhile, the Ministry of Coal has been requested to allocate around 27 metric tonnes per annum for this according to the official announcement.
Gujarat Urja Vikas Nigam Ltd (state electricity regulation board), Maharashtra State Electricity Distribution Company Ltd (India’s largest electricity distribution utility also known as Mahavitaran), Madhya Pradesh Power Management Company Ltd, New Delhi Municipal Corporation and Tamil Nadu Generation and Distribution Corporation Ltd are some of the entities that have expressed interest in the scheme.
The last date for the bid submission is December 21, 2022, the release stated.
This is the first time that bidding is being carried out under B(v) of the Shakti scheme. Besides, a revised PPA or power purchase agreement for the medium term is being used in this bidding.
The Ministry of Power had notified the guidelines for procuring power on a Finance, Own and Operate (FOO) basis under para B (v) of the SHAKTI Policy on October 25, earlier this year. The methodology for coal allocation under the provisions of Para B (v) of the policy was issued on May 11, 2022.
The policy aims to help states facing power shortages and help generation plants to increase their capacities.
With inputs from PTI.
