Cos oppose qualification norms for big power units
The ultra-mega power projects are facing fresh problems as the companies in the race have expressed concerns on the qualification criteria, tariff quotes, coal mine development and environmental clearance to the ministry of power.
By Nevin John, TNN |
MUMBAI: The ultra-mega power projects are facing fresh problems as the companies in the race have expressed concerns on the qualification criteria, tariff quotes, coal mine development and environmental clearance to the ministry of power.
In its letter to the ministry, Tata Power Company (TPCL) said there is no qualification criteria indicated in the bid for the choice of equipment in respect of its past proven performance. Recently, global power major Allied Energy Services’ Indian subsidiary, AES India, had planned to pull out of the race for the Mundra project due to the risks involved in fuel linkage.
Power Finance Corporation, the nodal agency that conducts the bidding of ultra mega projects, had received 13 requests for qualification (RoQ) for Mundra (Gujarat) and 15 for Sasan (Madhya Pradesh) projects, and signed power purchase agreements with beneficiary states.
As the projects are a matter of national prestige and are critical, TPCL said that at least 8,000 hours of successful track record should be included as criteria to make choice of boiler, turbine-generator units.
“Earlier, the company had suggested a change in the clause about the power procurer’s default payment. They insisted that the choice to sell back electricity to defaulting procurer should be with seller. TPCL has requested a change in tariff quotes also,” said sources.
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The company has requested to extend the benefit of ultra-mega power project status to Sasan coal mine involved in it and the equipment imported for mining. For the development of the Moher coal block, TPCL has requested to acquire 300 hectares of land adjacent to the block. The companies are awaiting environmental clearance for Sasan and Mundra projects and demanded modification in the draft issued by Central Electricity Regulatory Commission (CERC) to enable tie-up for fuel linkage.
To reduce the risk perception of banks and financial institutions, the companies have requested to permit a reset of interest rates at the end of a particular period. TPCL recommended that Madhya Pradesh and Gujarat governments should issue a commitment communication in terms of state-related aspects.
Domestic companies such as National Thermal Power Corporation (NTPC), TPCL, Reliance Energy, GMR Industries, GVK Power and Infrastructure, Essar Group, Torrent Power, Jindal Steel and Power and Jai Prakash Industries are in the race for ultra-mega power projects. YTL Corp Berhard, Israel Electric, China Light and Power, Korea Electric Power Corporation, Mitsui and Company, Suez Energy and Sumitomo Corporation are also in the pre-qualification round.
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