Executive Summary:
This document notifies guidelines for long-term electricity procurement from thermal power stations set up on a Design, Build, Finance, Own and Operate (DBFOO) basis. It includes sourcing fuel as provided under Model Bidding Documents, including coal allocation under specific sections of the SHAKTI Policy. These guidelines, effective March 6, 2019, aim to introduce e-bidding for long-term power procurement.
Key Points / Main Content:
* **Purpose and Scope:**
* Notifies guidelines for long-term procurement of electricity from DBFOO thermal power stations.
* Includes fuel sourcing under Model Bidding Documents and coal allocation under SHAKTI Policy (B I, BIII, BIV).
* Introduces e-bidding for power procurement.
* **Model Bidding Documents:**
* Adopts Model Request for Qualification (MRFQDBFOO), Model Request for Proposals (MRFP DBFOO), and Model Power Supply Agreement (MPSA DBFOO).
* Facilitates coal use as per SHAKTI Policy para B I, BIII, and BIV.
* Uses the DEEP eBidding portal developed by PFC Consulting Limited.
* **Terms and Conditions:**
* Model Bidding DocumentsDBFOO are part of these Guidelines.
* Restricted to projects with Power Supply Agreements for 7-25 years, with a 5-year extension option.
* Tariff determined through bidding based on these Guidelines shall be adopted by the Appropriate Commission.
* Deviations from Model Bidding Documents require prior approval from the Appropriate Commission.
* **Repeal and Savings:**
* Repeals earlier guidelines issued on November 9, 2013, and amendments.
* Agreements/actions prior to this date remain unaffected and governed by the repealed guidelines.
Impact Analysis:
* **Central Government:**
* Impact: Responsible for notifying and enforcing the guidelines, creating a competitive and transparent environment.
* Action Required: Ensure compliance with Section 63 of the Electricity Act, 2003, and maintain the DEEP eBidding portal.
* **State Governments:**
* Impact: Must promote competition in electricity procurement.
* Action Required: Facilitate the adoption of the Model Bidding Documents by distribution licensees.
* **Electricity Regulatory Commissions:**
* Impact: Responsible for tariff adoption and approving deviations from Model Bidding Documents.
* Action Required: Review and approve tariffs determined through the bidding process and assess any deviations from the Model Bidding Documents.
* **Distribution Licensees:**
* Impact: Required to procure electricity through competitive bidding based on the Model Bidding Documents.
* Action Required: Adopt the Model Bidding Documents DBFOO for long-term power procurement and use the DEEP eBidding portal.
* **Power Producers:**
* Impact: Must construct and operate thermal power plants on a DBFOO basis and participate in competitive bidding.
* Action Required: Offer the lowest tariff for electricity supply and comply with the terms of the Power Supply Agreement.
* **PFC Consulting Limited:**
* Impact: Responsible for the DEEP eBidding portal.
* Action Required: Maintain the DEEP eBidding portal and ensure its accessibility.
Key Entities Referenced
Electricity Act, 2003: An act of the Parliament of India to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity
Ministry of Power: The ministry responsible for the power sector in India.
Central Government: The Union Government of India.
Thermal Power Stations: Power plants that generate electricity by using heat to produce steam, which drives a turbine connected to a generator.
SHAKTI Scheme for Harnessing and Allocating Koyala Coal Transparently in India: A policy by the Ministry of Coal for allocation of coal.
Model Bidding Documents: Standard documents issued by the Central Government for long term procurement of electricity.
PFC Consulting Limited: A consulting company involved in developing the DEEP eBidding portal.
DEEP eBidding portal: An electronic platform developed by PFC Consulting Limited for e-bidding process for procurement of power.
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EXTRAORDINARY
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PART I—Section 1
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PUBLISHED BY AUTHORITY
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1525 GI/2019 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1)]
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अविध तक, 5 वष (cid:9) के िव(cid:29)तार के (cid:19)ावधान के साथ, िव(cid:17)ुत आपूAत (cid:9) के िलए ह(cid:29)त ा(cid:31)र (cid:1)कए गए िव(cid:17)ुत आपAू त (cid:9)करार के अनसु ार
िनमा(cid:9)ण एवं (cid:19)चालन (cid:1)कया जाता ह।ै
3. मॉडल बोली द(cid:29)तावेज(cid:22) को शािमल करत े Rए इन (cid:1)दशा-िनदशF (cid:22) के आधार पर बोली (cid:19)(cid:1)$या के मा’यम से िनधा(cid:9)Eरत
(cid:19)शु(cid:3)क अिधिनयम क( धारा 63 के (cid:19)ावधान(cid:22) के अनसु रण म(cid:13) उपयुB आयोग 7ारा अपनाया जाएगा।¹Hkkx Iµ[k.M 1º Hkkjr dk jkti=k % vlk/kj.k 3
4. मॉडल बोली द(cid:29)तावेज(cid:22) स े कोई िवचलन उपयBु आयोग के पूव(cid:9) अनमु ोदन से ही (cid:1)कया जाएगा। बशत F (cid:1)क मॉडल
बोली द(cid:29)तावेज(cid:22) म(cid:13) अिभ(cid:28)B Cप से अनमु ित (cid:1)दए गए (cid:1)कसी पEरयोजना िवशषे संशोधन(cid:22) का अथ(cid:9) मॉडल बोली द(cid:29)तावेज(cid:22) स े
िवचलन के Cप म(cid:13) नह\ लगाया जाएगा।
5. 08 नव:ब र, 2013 को जारी मॉडल बोली द(cid:29) तावेज(cid:22) और उनम (cid:13) समय-समय पर (cid:1)कए गए संशोधन(cid:22) सिहत
09 नव:ब र, 2013 को जारी 'िडजाइन, िनमा(cid:9)ण, िव(cid:25) त, (cid:29)वािम(cid:25)व और (cid:19)चालन (डीबीएफओओ) आधार पर (cid:29)थ ािपत ताप
िव(cid:17)ुत (cid:29)ट ेशन(cid:22) से िव(cid:17)ुत क( अिध(cid:19)ािPत के िलए समय-समय पर यथा संशोिधत (cid:1)दशा-िनदशF ' एतSारा िनर(cid:29) त (cid:1)कया जाते ह।6
बशतF (cid:1)क इस तारीख स े पूव (cid:9) ह(cid:29)ता(cid:31)र (cid:1)कया गया कोई भी करार या क( गई कोई भी कार(cid:9)वाई 2005/2013/2015
के उB (cid:1)दशा-िनदशF (cid:22) के ऐस े िनरसन 7ारा (cid:19)भािवत नह\ होगी और इसके अंतग(cid:9)त िनरिसत (cid:1)दशा-िनदशF (cid:22) 7ारा शािसत
होती रहग(cid:13) ी।
घन0याम (cid:19)साद, म_ु य अिभयंता
MINISTRY OF POWER
RESOLUTION
New Delhi, the 6th March, 2019
Guidelines for long term Procurement of Electricity from Thermal Power Stations set up on
Design, Build, Finance, Own and Operate (DBFOO) basis and sourcing fuel as provided under Model
Bidding Documents including allocation of coal under B (I), B(III) and B(IV) of SHAKTI (Scheme for
Harnessing and Allocating Koyala (Coal) Transparently in India) Policy.
No. 23/17/2013-R&R(Vol-VI) Part 4.—Whereas the Central Government is engaged in creating an
enabling policy and regulatory environment for the orderly growth of generation of electricity in accordance
with the provisions of the Electricity Act, 2003 (the “Act”);
Whereas it is incumbent upon the Central Government, State Governments, Electricity Regulatory
Commissions and the distribution licensees to promote competition in the procurement of electricity through
competitive and transparent processes;
Whereas the Central Government has evolved a standard contractual framework for long term
procurement of electricity by the distribution licensees from power producers who agree to construct and
operate thermal power generating stations on a ‘Design, Build, Finance, Own and Operate (“DBFOO”) basis;
Whereas, the Central Government had, vide its letter No. 23/17/2011-R&R(Vol-V) dated
8th November, 2013, issued the Model Bidding Documents comprising the Model Request for Qualification
(the “MRFQ”), the Model Request for Proposals (the “MRFP”) and the Model Power Supply Agreement (the
“MPSA”) (collectively, the “Model Bidding Documents”) to be adopted by distribution licensees for
procurement of electricity from the power producers through a process of open and transparent competitive
bidding based on offer of the lowest tariff from thermal power generating stations constructed and operated on
DBFOO basis. The Guidelines were issued on 9th November 2013 and subsequent amendments were issued
on 16th April 2015 and 5th May 2015.
Ministry of Coal, vide its letter No. 23011/15/2016-CPD/CLD, dated 22nd May 2017, has introduced
the policy guidelines for allocation of Coal linkages to Power Sector - New More Transparent Coal Allocation
Policy for Power Sector, 2017- SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently
in India) (referred as the “SHAKTI Policy”).4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1)]
Based on above and to introduce e-bidding process for procurement of power under long term, the
Central Government has, vide its letter No. 23/17/2013-R&R(Vol-VI) dated 5th March, 2109 issued the Model
Bidding Documents comprising the Model Request for Qualification - DBFOO (the “MRFQ-DBFOO”), the
Model Request for Proposals - DBFOO (the “MRFP - DBFOO”) and the Model Power Supply Agreement -
DBFOO (the “MPSA- DBFOO”) (collectively, the “Model Bidding Documents - DBFOO”), to facilitate the
use of coal as per para B (I), B(III) and B(IV) of SHAKTI Policy , to be adopted by distribution licensees for
procurement of electricity from the aforesaid power producers through a process of open and transparent
competitive bidding based on offer of the lowest tariff from thermal power generating stations constructed and
operated on DBFOO basis and sourcing fuel as provided under Model Bidding Documents including
allocation of coal under B (I, III and IV) of SHAKTI Policy; through an electronic platform (DEEP e-Bidding
portal) developed by PFC Consulting Limited .
The link for the DEEP e-Bidding portal is available on the website of Ministry of Power
(www.powermin.nic.in) and PFC Consulting Limited (www.pfcclindia.com).
Now, therefore, in exercise of the powers conferred under section 63 of the Electricity Act, 2003, the
Central Government hereby notifies these guidelines to be known as the ‘Guidelines for Procurement of
Electricity from Thermal Power Stations set up on DBFOO Basis and sourcing fuel as provided under
Model Bidding Documents including allocation of coal under B (I), B(III) and B(IV) of Scheme for
Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) Policy (the “Guidelines”).
These Guidelines shall come into effect from the date hereof subject to the following terms and
conditions:
1. The terms and conditions specified in the Model Bidding Documents-DBFOO referred to hereinabove
shall, by reference, form part of these Guidelines and shall be treated as such.
2. The application of these Guidelines shall be restricted to projects constructed and operated in
accordance with a Power Supply Agreement signed for Supply of electricity 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 the Power Supply
Agreement.
3. The tariff determined through the bidding process based on these Guidelines comprising the Model
Bidding Documents shall be adopted by the Appropriate Commission in pursuance of the provisions
of section 63 of the Act.
4. Any deviation from the Model Bidding Documents shall be made only with the prior approval of the
Appropriate Commission. Provided, however, that any project specific modifications expressly
permitted in the Model Bidding Documents shall not be construed as deviations from the Model
Bidding Documents.
5. The ‘Guidelines for Procurement of Electricity from Thermal Power Stations set up on Design, Build,
Finance, Own and Operate (DBFOO) basis’ issued on 9th November 2013, as amended from time to
time, including the Model Bidding Documents issued on 8th November 2013 and amended from time
to time thereunder, are hereby repealed.
Provided, however, that any agreements signed or actions taken prior to the date hereof shall not be
affected by such repeal of the said Guidelines of 2005/2013/2015 and shall continue to be governed by the
Guidelines repealed hereunder.
GHANSHYAM PRASAD, Chief Engineer
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.