State-run Maharashtra State Power Generation Company (MahaGenco) plans to develop power projects through joint ventures with the private sector, owing to constraints in the availability of funds.
The company, which has a thermal installed capacity of 6,980 Mw, has decided to offer 74 per cent of the projects to private sector partners and has invited expressions of interest for its coal-based 3,300-Mw (5x660 Mw) project at Dondaicha in north Maharashtra and the 1,980-Mw (3x660 Mw) project at Dhopawe, in the Konkan region. The Dondaicha project entails an investment of Rs 21,450 crore, while the Dhopawe project accounts for Rs 14,220-crore investment.
Speaking on condition of anonymity, A MahaGenco director told Business Standard, “This is the first time MahaGenco is entering a joint venture with the private sector in a bid to synergise expertise, achieve timely completion of projects and procure the best technologies available. The issues relating to land acquisition and clearances would be taken care of by MahaGenco, while private sector companies that would bag these two projects would have to see how the best technologies are put in place for efficient operations.”
He said the qualified bidders who meet the stipulated conditions of net worth and operational experience would be short-listed and MahaGenco would invite a request for proposal. For both the projects, bidders must have net worth of at least Rs 1,500 crore.
The official said gradation for bidders might increase, depending on their experience in developing and operating coal-based projects, both coastal as well as non-coastal.
He added, “The bidder would get 10 points if it has developed and operated a project of up to 1,000 Mw. For the Dhopawe coastal project, bidders should be experienced in developing and operating a port that handles dry bulk cargo. Here too, gradation would increase, depending on the experience.”
He said considering the problems faced by projects that used imported coal, it had been decided as a stop-gap arrangement for the first two years, in case of a shortfall in coal supply from the Machhakata coal block, the joint venture partner would make the necessary arrangements for supplying imported coal to compensate for the shortfall. The compensation would be based on the Central Electricity Regulatory Commission index, or any other relevant index.
MahaGenco’s move is part of its plans to add capacity in the state. Projects with a capacity of 4,230 Mw are under various stages of construction, while capacity of 13,530 Mw is scheduled to be commissioned at the Dondaicha and Dhopawe projects during the 12th and 13th five-year Plans.
