MoUs inked for Sasan, Mundra power projects

Special purpose vehicles (SPVs) launched for the fast-track ultra mega power projects at Sasan (Madhya Pradesh) and Mundra (Gujarat), have signed memorandum of understanding with power distribution companies. There are eight such power projects in the country.

However, MoUs between the other six SPVs and distribution companies are yet to be inked.

"The MoUs have been signed between state power distribution companies and Sasan Power and Coastal Gujarat Power, " a senior government official said.

The SPVs have received authorisation from distribution companies and licensees for carrying out the bid process on their behalf.

The MoUs also specify the quantum of power to be procured by or on behalf of each discom, authorisation to the SPVs to carry out the bid process. on their behalf and acceptance of the proposed payment security mechanism by procurer and the agency having a charge on revenues.

Allocations have already been decided for the 4,000 Mw ultra-mega power projects at Tadri (Karnataka), Sasan, Mundra and Girye (Maharashtra). Out of the demand of 27,400 Mw for 13 states, the power ministry had allocated 16,000 Mw.

The Central Electricity Regulatory Commission had earlier asked the power ministry to clarify the position of the Power Finance Corporation (PFC) on execution of the eight ultra mega power projects.

It had said that under the Electricity Act 2003, only those who want to procure power or their agents are entitled to invite bids.