Bidding criteria for power projects may change

The criteria for the next round of bidding for ultra mega power projects may see some changes. According to sources, future bidders may have to meet more stringent technical conditions and only then will the financial bids be taken up.

The sources said a team from the Power Finance Corporation, the nodal agency for the projects, was still working on the proposed changes. So far, the bids have been based on a single criterion "" per unit price of electricity.

The sources added that the question of partnerships would also be looked at more closely in the future. Senior government officials are understood to have expressed concern over the way several of the bidders changed partners during the course of the bidding process for the first two projects.

Among the other changes being considered is a shortened time frame for financial closure of the projects. Currently, the time frame is 12 months from date of receiving the letter of intent.

However, there are no changes in the bid documents released a few days ago for the third ultra mega power project at Krishnapatnam in Andhra Pradesh.

Industry sources added that several of the prospective bidders have raised concerns over the structuring of the coal indexation mechanism and freight handling charges for imported coal based projects.

The power ministry has already indicated that successful bidders will not be allowed to bid for a second until after the first project takes off.