Reverse bidding for power transmission projects likely
The new bid document, officials said, would set a benchmark price below which the companies would need to bid. The move comes in wake of the government’s intention of awarding transmission projects worth Rs 1 lakh crore during the year. Power Finance Corporation (PFC) is in the process to award around eight new transmission lines.
Senior executives in PFC said the new lines would be bid according to the new bidding document which would be enforced soon. “The new bid document which is under draft stage would suggest a certain benchmark price of a transmission project. The participants would have to bid lower than that price. The industry has become mature in the past five years of it being opened to the private companies. Hence, aggressive yet sensible bids would be expected,” said an official in the know.
This also follows the recent directive of hiving off the ‘Central Transmission Utility’ function from the Power Grid Corporation of India Limited (PGCIL). PGCIL as CTU is responsible for wheeling of power generated by power producers and involved in planning transmission systems and operations. It also has additional role of collecting tariffs from power generators, state electricity boards etc using the transmission infrastructure. The CTU retains its share and then distributes the remaining to other private licensees.