Home / Industry / Energy /  Power ministry to procure 4,500 MW electricity for five years
Back

New Delhi: The power ministry on Monday announced a scheme for the procurement of aggregate electricity of 4,500 megawatts for five years under the Scheme for Harnessing and Allocating Koyala Transparently in India or SHAKTI policy.

“Ministry of Power kicks off a Scheme for Procurement of Aggregate Power of 4500 MW on competitive basis or five years on Finance, Own and Operate (FOO) basis under B (v) of SHAKTI Policy," the government press release said.

PFC Consulting Limited, a wholly owned subsidiary of PFC Ltd, has been designated as the nodal agency by the Ministry of Power for inviting bids for the supply of 4,500 MW. Supply of electricity will commence from April 2023. Ministry of Coal has been requested to allocate around 27 mtpa for this, it stated.

The utilities that have evinced interest for the scheme are Gujarat Urja Vikas Nigam Ltd, Maharashtra State Electricity Distribution Company Ltd, Madhya Pradesh Power Management Company Ltd, New Delhi Municipal Corporation and Tamil Nadu Generation and Distribution Corporation Ltd. The last date for the bid submission is 21st December 2022.

It is for the first time that bidding is being carried out under B(v) of Shakti scheme. Also, revised PPA for medium term is being used in this bidding.

This scheme is expected to help the states that are facing power shortage and also help generation plants to increase their capacities, it added.

The Ministry of Power had notified the Guidelines for procurement of power on Finance, Own and Operate (FOO) basis under para B (v) of the SHAKTI Policy on 25 October 2022. The methodology for coal allocation as per provisions of Para B (v) of SHAKTI policy was issued on 11 May, 2022.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout
x