CEA rejects UP power regulator’s move on Bara project

Font Size

Print

Feedback

Email

Discuss

Lucknow, Nov 5: The Central Electricity Authority has rejected Uttar Pradesh Power Corporation's plan to combine generation and transmission for the 3x660-mw Bara mega power project in Allahabad, the biggest power project in the private sector in the state.

The rejection has been made on the ground that it would be technically unfeasible under the present Electricity Act 2003.

The CEA's refusal to clear the request for proposal (RFP) has now forced the UPPCL authorities to separate the generating unit from the transmission.

In a decision taken on late Tuesday night, the Uttar Pradesh Electricity Regulatory Commission (UPERC) cleared the RFP for the generating unit. While it has also cleared all the nine companies which had earlier submitted their request for qualifications (RFQ) for setting up the Bara powerhouse, the UPPCL has extended the last date of submitting RFQs to November 23 so that other interested companies can submit their RFQs for the generating unit.

Talking to FE, chairman of UPERC PN Pathak said the UPPCL was apprised of the CEA’s advice on Monday and it has now been decided to separate the generation from the transmission project. “Efforts are now on to issue a separate RFP for the generation project first and it is expected to be done by the end of this month,” he said.

It may be mentioned that heavyweights like NTPC, Indiabulls, Jaypee group, Lanco, GVK, L&T, Adani, Reliance Energy and Isolux Corsan had expressed interest in setting up the first of its kind combined generation and multi-purpose transmission project.

The CEA has advised Uttar Pradesh Electricity Regulatory Authority that it would be appropriate to separate the generation and the transmission projects and conduct separate bidding process for the two.

“Since transmission is an activity, which requires a license under the Electricity Act 2003, the successful bidder will need to apply for the license in addition to all the actions necessary to start construction of the power plant as also of the proposed transmission line. This would add another layer of uncertainty and risk to the task of implementation of the contract” it had written.