On November 28, 2022
the Ministry of Power (MoP) introduced a scheme for Procurement of Aggregate Power of 4500 MW on competitive basis for 5 years on Finance, Own and Operate (FOO) basis under B (v) of SHAKTI Policy.
- For this scheme, the PFC Consulting Limited, a wholly owned subsidiary of PFC (Power Finance Corporation) Ltd has been designated as the Nodal Agency which will be responsible for conducting the bid process for procurement of power.
- It should be noted that, alternatively, a group of states may also appoint a Nodal Agency of their choice.
SHAKTI is an acronym for Scheme for Harnessing and Allocating Koyala Transparently in India. It was launched in 2018 to provide coal to stressed power units which lack coal supply.
What is in the scheme?
The scheme envisages to help the states that are facing power shortage and also to help generation plants to increase their capacities. In this regard, PFC Consulting Ltd has invited bids till December 21, 2022 for the supply of 4,500 MW (Mega Watt). The supply of electricity will commence from April 2023.
- The Ministry of Coal has been requested to allocate around 27 MTPA (Million Tonnes per Annum) for this.
- It is for the first time that bidding is being carried out under B(v) of Shakti scheme. Also, a revised Power Purchase Agreement (PPA) for the medium term is being used in this bidding.
- Key Points:
- i.Interested entities for this scheme are Gujarat Urja Vikas Nigam Ltd (GUVNL), Maharashtra State Electricity Distribution Company Ltd (MSEDCL), Madhya Pradesh Power Management Company Ltd (MPPGCL), New Delhi Municipal Corporation (NDMC), and Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO).
- ii.MoP had notified the Guidelines for procurement of power on FOO basis under para B (v) of the SHAKTI Policy on October 25, 2022.