Gujarat’s tender for 1000MW thermal power gets dismal response
Gujarat’s tender to buy 1,000 MW of coal-based electricity received dismal response with only one company participating in the bid, that too with an offer to sell only 500 MW of power. State electricity department officials told FE that GMR Chattisgarh offered to sell power to the state under the ‘flexible utilisation of coal’ scheme. While the ceiling tariff for the reverse auction was kept at Rs 2.82/unit, GMR agreed to sell electricity at Rs 2.81/unit. The state is now awaiting the approval of the Gujarat Electricity Regulatory Commission to complete the deal.
Only five parties had participated in the pre-bid meeting for the auctions which was deferred multiple times expecting larger involvement from the industry. Industry sources say that enough bidders were not interested due to unfriendly terms and conditions, especially against the backdrop of low ceiling tariff. The tender document had no assurance on stability of coal prices and no offtake guarantee, which means that the state can stop procuring power any time it wants.