Date: 2015-05-06Category: Extra OrdinaryState: Union GovernmentCountry: India
Amendment to the Guidelines for Procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis.
Executive Summary:
This document is a notification of amendments to the guidelines for the procurement of electricity from Thermal Power Stations set up on a Design, Build, Finance, Own and Operate (DBFOO) basis. It modifies previous guidelines issued in November 2013 and amended in April 2015, in accordance with Section 63 of the Electricity Act, 2003. The amendments concern the duration of power supply agreements and deviation from standard bidding documents. It was issued on May 5, 2015.
Key Points / Main Content:
Power Supply Agreement Duration:
The application of these guidelines is now restricted to projects constructed and operated on a DBFOO basis for power supply agreements with a period of 7 to 25 years from the commencement of supply, including a provision for a 5-year extension at the option of either party.
Deviation from Standard Bidding Documents:
Any deviation from the Standard Bidding Documents must be approved by the Appropriate Commission, not the Central Government.
Project-specific modifications expressly permitted in the Standard Bidding Documents are not considered deviations.
Impact Analysis:
Distribution Licensees:
Impact: Given the authority to deviate from Standard Bidding Documents only with prior approval of the Appropriate Commission.
Action Required: Obtain approval from the Appropriate Commission for any deviations from the Standard Bidding Documents.
Central Government:
Impact: No longer responsible for approving deviations from Standard Bidding Documents.
Action Required: N/A
Key Entities Referenced
Electricity Act, 2003: A law related to the electricity sector in India, under Section 63 of which the guidelines were notified.
Ministry of Power: The government ministry responsible for power sector in India, which issued the resolution.
Thermal Power Stations: Power plants that generate electricity from heat, specifically those set up on Design, Build, Finance, Own and Operate (DBFOO) basis.
DBFOO: Design, Build, Finance, Own and Operate, a project delivery method.
New Delhi: The location where the resolution was issued.
Power Supply Agreement: An agreement for the supply of power, with a duration of 7 to 25 years with provision of extension of 5 years.
Standard Bidding Documents: Documents used in the bidding process for power projects, deviations from which require approval.
Jyoti Arora: Jt. Secy. of the Ministry of Power
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Kयोित अरोरा, संयु9 सिचव
MINISTRY OF POWER
RESOLUTION
New Delhi, the 5th May, 2015
Amendment to the Guidelines for Procurement of Electricity from Thermal Power Stations set up on Design,
Build, Finance, Own and Operate (DBFOO) basis
No. 23/09/2014-R&R.—The revised guidelines for procurement of electricity from Thermal Power Stations set
up on Design, Build, Finance, Own and Operate (DBFOO) basis have been notified under the provisions of section 63 of
the Electricity Act, 2003 vide resolution No. 23/17/2011-R&R (Vol-V) published in the Gazette of India (Extraordinary)
(Part I – section 1) on 9th November, 2013.
Whereas, in order to ensure that the benefits of coal block auction are passed on to the consumers these
guidelines have already been amended vide gazette resolution No. 23/09/2015-R&R dated 16th April, 2015.
The following further amendments are hereby made in the said guidelines of November, 2013 namely:-
The para at point No.2 “The application of these Guidelines shall be restricted to projects constructed and
operated in accordance with a Power Supply Agreement signed for a period of about 25 years including
construction period with provision of extension of 5 years at the option of either party.”
May be read as under:
“The application of these Guidelines shall be restricted to projects constructed and operated on DBFOO basis
for supply of power for a period of 7 years and above upto a period of 25 years from the date of commencement
of supply of power with provision of extension of 5 years at the option of either party in accordance with a
Power Supply Agreement.”
The para at point No. 4“Any deviation from the Standard Bidding Documents shall be made only with the
prior approval of the Central Government. Provided, however, that any project specific modifications expressly
permitted in the Standard Bidding Documents shall not be construed as deviations from the Standard Bidding
Documents.”
May be read as under:
“Any deviation from the Standard Bidding Documents shall be made by the Distribution Licensees only with
the prior approval of the Appropriate Commission. Provided, however, that any project specific modifications
expressly permitted in the Standard Bidding Documents shall not be construed as deviations from the Standard
Bidding Documents.”
JYOTI ARORA, Jt. Secy.
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.