Saturday, December 21

Urja Vikas issues fresh tender for 3,200 MW thermal projects

Jaipur, December 17, 2024.

After cancelling the joint tender for solar and thermal projects of 11,200 MW, Urja Vikas and IT Services Ltd, the power procuring entity of the state govt, issued Monday a notice inviting tender for only thermal capacity of 3,200 MW.

In the new tender, the controversial solar component of 8,000 MW was dropped. Instead, the state agency is currently banking on the decentralised projects of smaller capacities awarded under the Kusum C, A and PM Surya Ghar schemes by the three discoms to provide power locally at the sub-station level.

Earlier, the single tender for both thermal and solar (3,200 MW and 8,000 MW, respectively) totalling 11,200 MW courted controversy as the industry expressed apprehension that pure-play solar or thermal firms would be automatically ineligible. It would have restricted price discovery in the absence of a sufficient number of bidders, and the state would have paid higher rates for power procurement.

As per the new tender, the winning bidders will be allocated coal mines as per the Centre’s Shakti policy for 25 years, the period for the agreement to be signed for power purchase. The full tender document will be available by the end of this month. The 3,200 MW has been divided into four plants, each having a capacity of 800 MW.

A source in the industry said, “If this had been done earlier, the process of auctions and award of projects would have been completed by now. Anyway, the govt has taken the right decision to issue tenders separately for both sources of power.”

In the new solar policy, decentralised solar projects have been given priority.

“The state will promote the setting up of decentralised solar power projects with a minimum capacity of 0.5 MW and a maximum capacity of 5 MW in the premises and in the vicinity of 33 kV grid sub-stations in order to promote the sale of power to discoms,” says the policy, putting to rest the need for auctions of large capacities, like the tender for 8,000 MW.

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