2nd bidding round for Orissa UMPP not likely this fiscal: Power Ministry official

NEW DELHI: The Power Ministry may not invite a second round of bids for the 4,000-MW Bedabahal ultra-mega power project in Orissa in the current financial year as it is in the process of making changes to the standard bidding documents for UMPPs.

"The changes in the standard bidding documents are underway, so only after those changes are made and approved by the Cabinet, we can go ahead with the next round of bids for the Orissa UMPP," a Power Ministry official said.

"That may take a few months," he added. On being asked whether a Request for Proposal could be invited by March, 2012, he said, "Looks unlikely."

The changes to the bid document for UMPPs could be aimed at accommodating future increases in international coal prices.

The developers of the already awarded imported coal-based Mundra ( Gujarat) and Krishnapatnam (Andhra Pradesh) UMPPs have requested the Power Ministry to permit them to increase the tariffs for electricity from these generation plants as global coal prices have risen significantly in comparison to the prevailing rates at the time bids were submitted.

However, the Power Ministry is believed to have advised the respective developers to sort out the issue bilaterally with the procurers of power from these projects.

Initial bids for the 4,000-MW UMPP at Bedabahal, in Orissa, were invited by Power Finance Corporation -- the nodal agency for UMPPs - in June this year.

As many as 20 companies participated in the tender, out of which all are believed to have qualified for the second round of bidding.

For the second round of bidding, these companies will have to provide technical as well as financial bids.

Meanwhile, the last date for submission of preliminary bids for the Sarguja UMPP in Chhattisgarh has been extended to March 5, 2012.