Date: 2026-05-18Category: Extra OrdinaryState: Union GovernmentCountry: India
In pursuance of paragraph 5 1 and paragraph 6 4 of the Ministry of Power s Resolution dated 22 07 2020 on Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round The Clock Power from Grid Connected Renewable Energy Power Projects
**Executive Summary**
The Central Electricity Regulatory Commission (CERC) has notified the annual escalation rates and parameters for evaluating bids related to Round-The-Clock (RTC) power procurement. This applies to renewable energy projects complemented by coal-based thermal power as per the Ministry of Power's guidelines. These specific rates are mandatory for the evaluation of all bids with an opening date scheduled up to March 31, 2027.
**Key Points / Main Content**
**Domestic Fuel Escalation Rates**
* **Domestic Coal:** The annual escalation rate is set at 2.61%.
* **Domestic Gas:** The annual escalation rate is set at 3.46%.
**Inland Transportation Charges**
* **Coal Transportation:** Rates are tiered based on distance:
* Up to 125 Km: 8.89%
* Up to 500 Km: 6.17%
* Up to 1000 Km: 5.28%
* Up to 2000 Km: 3.18%
* Beyond 2000 Km: 2.65%
* **Gas Transportation:** The inland escalation rate is set at 7.92%.
**Imported Fuel and International Transportation**
* **Imported Coal:** Escalation rate for the fuel is 4.13%.
* **Imported Gas:** Escalation rate for the fuel is negative at (-)2.17%.
* **Transportation of Imported Fuel:** A negative escalation rate of (-)3.79% applies to the transportation of both imported coal and imported gas.
**Evaluation Parameters**
* **Discount Rate:** A standard discount rate of 9.17% is to be utilized for the purpose of bid evaluation.
**Impact Analysis**
**Stakeholder: Project Developers / Bidders**
**Impact**
Bidders are provided with a standardized set of escalation figures to calculate the levelized tariff for their proposals. The negative escalation rates for imported gas and transportation will lower the projected future costs in their bid evaluations.
**Action Required**
Bidders must incorporate these specific percentages into their financial models for any RTC power procurement bids opening before March 31, 2027.
**Stakeholder: Procurement Entities (Utilities/Discoms)**
**Impact**
These entities gain a uniform, regulatory-approved framework to evaluate and compare competitive bids, ensuring transparency in the selection of Round-The-Clock power providers.
**Action Required**
Evaluation committees must apply these updated escalation and discount rates when assessing the financial bids of participating developers.
**Stakeholder: Central Electricity Regulatory Commission (CERC)**
**Impact**
The Commission fulfills its regulatory mandate under the Ministry of Power’s resolution to provide technical parameters for tariff-based competitive bidding.
**Action Required**
The Commission must ensure these rates are updated or reviewed for bid openings occurring after the March 31, 2027, deadline.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The regulatory body that notified the specific escalation and discount rates for bid evaluation in power procurement.
Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round-The-Clock Power: The primary policy document governing the procurement of power from grid-connected renewable energy projects complemented by coal-based thermal power.
Ministry of Power: The central ministry whose resolution established the guidelines for the tariff-based competitive bidding process.
Harpreet Singh Pruthi: The Secretary of the Central Electricity Regulatory Commission who issued the official notification.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-18052026-272676
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 320] नई दिल्ली, सोमवार, मई 18, 2026/विै ाख 28, 1948
No. 320] NEW DELHI, MONDAY, MAY 18, 2026/VAISAKHA 28, 1948
अजधसचू ना
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3551 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
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7- vk;kfrr dks;ys ds ifjogu ds fy, o`f) nj (-)3.79
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[जवज्ञापन-III/4/असा./79/2026-27]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 16th April, 2026
F. No. Eco-E/2026-CERC.— In pursuance of paragraph 5.1 and paragraph 6.4 of the Ministry of Power’s
Resolution dated 22.07.2020 on “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round-
The-Clock Power from Grid Connected Renewable Energy Power Projects, complemented with Power from Coal Based
Thermal Power Projects” read with amendment dated 03.11.2020, the Central Electricity Regulatory Commission
notifies the following rates and other parameters for the purpose of bid evaluation.
I: Annual Escalation Rates for Bid Evaluation (for bid opening up to 31.03.2027)
Sr. Description Annual Escalation Rates for
No. Bid Evaluation (%)
1 Escalation rate for domestic coal 2.61
2 Escalation rate for domestic gas 3.46
3 Escalation rate for inland transportation charges for coal
3.1 Up to 125 Km distance 8.89
3.2 Up to 500 Km distance 6.17
3.3 Up to 1000 Km distance 5.28
3.4 Up to 2000 Km distance 3.18
3.5 Beyond 2000 Km distance 2.65
4 Escalation rate for inland transportation charges for gas 7.92
5 Escalation rate for imported coal 4.13
6 Escalation rate for imported gas (-)2.17
7 Escalation rate for transportation of imported coal (-)3.79
8 Escalation rate for transportation of imported gas (-)3.79
9 Discount rate to be used for bid evaluation 9.17
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./79/2026-27]
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.