Ministry of Power kicks off a Scheme for Procurement of Aggregate Power of 4500 MW on competitive basis or five years on Finance, Own and Operate (FOO) basis under B (v) of SHAKTI Policy.
Key points
- PFC Consulting Limited (A wholly owned subsidiary of PFC Ltd) has been designated as the Nodal Agency by the Ministry of Power.
- Under the scheme, PFC Consulting Ltd has invited bids for the supply of 4,500 MW.
- It is for the first time that bidding is being carried out under B(v) of Shakti scheme.
- Also, revised PPA for medium term is being used in this bidding. This scheme is expected to help the states that are facing power shortage and also help generation plants to increase their capacities.
About SHAKTI Policy
- The Ministry of Power had notified the Guidelines for procurement of power on Finance, Own and Operate (FOO) basis under para B (v) of the SHAKTI Policy on 25th October 2022.
- The methodology for coal allocation as per provisions of Para B (v) of SHAKTI policy was issued on 11th May, 2022.
- SHAKTI [Scheme for harnessing and Allocating Koyala (Coal) Transparently in India] was issued by Ministry of Coal in May, 2017.
- The introduction of SHAKTI policy by Government replaced the earlier discretion based system of granting coal linkages.
- This transformation has helped in achieving accountability in allocation of coal.
- It has ensured access to coal for several stressed plants thereby also helping the banking sector and overall economy.
- It will also help in affordable power through transparent bidding on the basis of discount on tariffs.
- Under the new policy guidelines for allocation of coal linkages to various segments of power sector issued by Ministry of Coal, CIL/SCCL are to grant coal linkages on notified price on auction basis for IPPs having already concluded domestic coal based PPAs.
