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Guidelines for determination of tariff & SBD for ... - Ministry of Power

Guidelines for determination of tariff & SBD for ... - Ministry of Power

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fuel tie up either by way <strong>of</strong> coal block allocation or fuel linkage<br />

In case <strong>of</strong> domestic gas, the Bidder shall have made firm arrangements <strong>for</strong><br />

fuel tie up by way <strong>of</strong> long term fuel supply agreement <strong>for</strong> the term & quantity<br />

as per Government <strong>of</strong> India gas allocation policy<br />

b) Fuel arrangements in the following cases shall have to be made <strong>for</strong> the quantity <strong>of</strong> fuel<br />

required to generate power from the power station <strong>for</strong> the total installed<br />

capacity.<br />

In case <strong>of</strong> imported coal, the Bidder shall have either acquired mines having<br />

proven reserves <strong>for</strong> at least 50% <strong>of</strong> the quantity <strong>of</strong> coal required OR shall<br />

have a fuel supply agreement <strong>for</strong> at least 50% <strong>of</strong> the quantity <strong>of</strong> coal required<br />

<strong>for</strong> a term <strong>of</strong> at least five (5) years or the term <strong>of</strong> the PPA, which ever is less.<br />

In case <strong>of</strong> RLNG, the Bidder shall have made firm arrangements <strong>for</strong> fuel tie<br />

up by way <strong>of</strong> fuel supply agreement <strong>for</strong> at least 50% <strong>of</strong> the quantity <strong>of</strong> fuel<br />

required <strong>for</strong> a term <strong>of</strong> at least five (5) years or the term <strong>of</strong> the PPA, which<br />

ever is less.<br />

Blending <strong>of</strong> Imported and Domestic coal may be used in which case, criteria <strong>for</strong><br />

imported and domestic coal shall be met separately in the ratio <strong>of</strong> blending<br />

v) Water linkage: The Bidder shall have obtained in-principle approval from the<br />

concerned state irrigation department or any other relevant authority <strong>for</strong> the<br />

quantity <strong>of</strong> water required <strong>for</strong> the power station.<br />

If the Bidder is a trading licensee, it shall have executed exclusive power purchase<br />

agreement(s) <strong>for</strong> the quantity <strong>of</strong> power <strong>of</strong>fered in its Bid and shall provide a copy <strong>of</strong> the<br />

same as part <strong>of</strong> its Bid. In such a case, the Bidder shall ensure that the entity with whom<br />

it has executed the exclusive power purchase agreement <strong>for</strong> supply <strong>of</strong> power under the<br />

bid process has completed the project preparatory activities as mentioned in (i) to (v)<br />

above. Furthermore, the Bidder shall be responsible <strong>for</strong> procuring from the entity<br />

developing the power station and submitting in its Bid, all the documentary evidence to<br />

establish that the project preparatory activities as in (i) to (v) above have been completed.<br />

In case <strong>of</strong> supply being proposed from an existing generating station, the Bidder should<br />

submit evidence in the <strong>for</strong>m <strong>of</strong> a declaration sent to RLDC/SLDC, as the case may be, in<br />

support <strong>of</strong> commercial operation <strong>of</strong> the generating station.<br />

3.3 It is recommended that the procurer should obtain the transmission clearances necessary<br />

<strong>for</strong> receiving power at the delivery points prior to inviting bids. However this shall not be<br />

a binding condition <strong>for</strong> the bid process. Unless otherwise specified in the bid documents,<br />

it shall be the responsibility <strong>of</strong> the selected bidder to obtain transmission linkage <strong>for</strong><br />

evacuation and inter-State transmission <strong>of</strong> power (where applicable).<br />

3.4 In the case <strong>of</strong> projects under Case 2 from which more than one distribution licensees<br />

located in different States intend to procure power by carrying out bidding process<br />

through a SPV, the PPA and other required project agreements (such as escrow<br />

agreement, hypothecation agreement and other project specific agreements) may be

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