Business Standard

Karnataka invites bids for supply of 1,000 Mw power

The date for the supply of power would be January 1, 2016

BS Reporter Bangalore
The Power Company of Karnataka Limited (PCKL), a government of Karnataka undertaking, has invited global bids for pre-qualification of applicants for the supply of 1,000 Mw power on long term to Karnataka state on design, build, finance, own and operate (DBFOO).

Announcing this at a press conference, here today, D K Shivakumar, minister for energy, government of Karnataka, said the government intends to purchase power for the next 25 years.

According to a tender notification issued by PCKL, the bidders having domestic coal linkage, captive coal blocks, sourcing coal through imports or imports from captive coal mines situated outside India, are eligible to participate in the bidding process.
 

The date for the supply of power would be January 1, 2016.  

Shivakumar said, the government intends to bridge the shortage of power during the peak hours in the coming days.

In this process, the government has also entered into power purchase agreements with the Damodar Valley Corporation (DVC) and Nuclear Power Corporation of India Limited (NPCIL) for the supply of 892 Mw of power. DVC would supply 450 Mw and NPCIL another 442 Mw to Escoms.

On behalf of the Escoms, the Power Company of Karnataka Limited (PCKL), a government of Karnataka undertaking, initiated the power procurement process.

Five electricity supply companies such as Bangalore Electricity Supply Company, Mangalore Electricity Supply Company, Hubli Electricity Supply Company, Gulbarga Electricity Supply Company and Chamundeshwari Electricity Supply Company signed the PPAs today.

Under the PPAs entered into between five Escoms and DVC, the power would be supplied by DVC at Rs 4.40 per unit for the next 25 years.

The NPCIL would supply power from their Kudankulam Nuclear Power Plant at Rs 3.50 per unit for 25 years, Shivakumar said.

The DVC has set up their own thermal power plants in the Eastern region and has offered the surplus power available within its generation capacity to government of Karnataka on short /medium/long term basis.

The government of Karnataka, on February 22,  2014, accorded approval for procurement of 450 Mw power from DVC (200 Mw from Mejia Thermal Power Station in West Bengal and 250 Mw from Koderma Thermal Power Station in Jharkhand state under long term for 25 years.

The power supply from DVC will commence after approval of long term access from PGCIL.

The NPCIL commenced power generation at Unit-1 of Kudankulam Nuclear Power Plant in Tamil Nadu on October 22, 2013 and the commercial operation is scheduled for April 2014 and the second unit in December 2014.

The corporation would supply 442 Mw from Kudankulam to Karnataka as part of its share. Karnataka has a share of 22.1 per cent from Kudankulam Nuclear Power Plant.

Shivakumar also said the government has decided to cancel the licenses of wind power producers for not implementing their projects in time.

“The Cabinet has passed a resolution in this regard. We will very soon come out with a detailed list of those who have taken approvals from the government for developing wind power generation projects, but have not implemented their projects for many years,” he added.

He also said the government is equipped to handle the peak demand situation during the current summer season.

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First Published: Mar 04 2014 | 8:28 PM IST

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