Pvt power projects norms firmed up

The developers will be selected through tariff-based bidding.

Policy guidelines for private players setting up transmission projects have been firmed up. An empowered committee headed by a Central Electricity Regulatory Commission official will identify projects, invite bids, select developers and facilitate the finalisation and signing of transmission service agreements between the developer and the power utilities.

"Power Grid Corporation of India will not be a member of the empowered committee as it may be in the fray for proposed projects as well," a senior power ministry official told Business Standard.

Of the investment of Rs 71,000 crore needed for reaching the power transfer capacity of 30,000 Mw by 2012, Rs 21,000 crore is expected through private sector participation. The guidelines are aimed to facilitate the same.

The empowered committee constituted by the ministry of power will have representatives from the power ministry, Central Electricity Regulatory Commission, Planning Commission, Central Electricity Authority and two experts from the power sector.

The developers will be selected through tariff-based bidding according to guidelines issued by the ministry of power under Section 63 of the Electricity Act, 2003. Central transmission utilities and joint venture companies are also eligible to bid in order to maintain sufficient competition.

"Regional load dispatch centres will assist the developer in case of default in payment by any utility or licensee," the official added. A government agency or a consultant will prepare a detailed project report for these projects.

The cost incurred on project formulation will be recovered from the agency that finally undertakes implementation of the project.