Under the scheme, a single entity can be allotted a maximum capacity of 600 Megawatt. The Scheme assures a minimum offtake of 55 per cent of contracted capacity and the tariff will be fixed for three years without any escalation.

April 30, 2018, 13:42 IST

New Delhi: Power Finance Corporation (PFC) today announced it will invite bids in the first week of May from coal based power generators without long-term Power Purchase Agreements(PPAs) for procurement of electricity.

“PFC Consulting Ltd is in process of inviting the bids in first week of May 2018 under the scheme. The bidding will be conducted on the Discovery of Efficient Electricity Price (DEEP) e-Bidding portal and with L1 matching for bucket filling without reverse auction,” the state-owned power sector financier said in a statement.

The power ministry has formulated a scheme under which generators would be selected through a tariff-based competitive bidding process and power trader PTC India will sign a three year PPA with the winning bidder and back-to-back power sale agreement with state discoms. The scheme is expected to help revive power demand which has affected the generators not having PPAs.

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Under the scheme, a single entity can be allotted a maximum capacity of 600 Megawatt. The Scheme assures a minimum offtake of 55 per cent of contracted capacity and the tariff will be fixed for three years without any escalation.

The ministry had recently issued the model bid documents on 6 April 2018 and the guidelines for the scheme were issued on 10 April 2018. Under the scheme, PFC Consulting Ltd will act as a nodal agency and PTC India as the aggregator.