CEA issues fresh norms to fast track capacity addition

Written by Sanjay Jog | Mumbai | Updated: Nov 25 2009, 04:52am hrs
The Central Electricity Authority (CEA) has issued fresh guidelines for qualifying norms for bidders of balance of plants (BoP). The guidelines are for coal/lignite-based thermal power plants on EPC basis. The move comes after the Centre had asked states not to further delay the placement of orders for BoP, in order to meet the capacity addition target. The power ministry, during its meeting with officials from different states on November 15, had expressed its disappointment over continued delays by states in ordering BoP, since this has taken its toll over meeting the capacity addition of 78,700 mw in the 11th Plan.

As reported by FE, the ministry has admitted that the actual capacity of over 62,000 mw would be added, while 12,000 mw will be made possible through the best possible efforts. According to the CEA, of the total 482 BoPs required for projects under construction during the 11th Plan, only 420 orders had been placed till the end of October.

The average annual turnover of the bidder/consortium leader should amount to at least Rs 400 crore over the last three consecutive years. Also, the net worth of the bidder/consortium leader, as on the last day of the preceding financial year, should not be less than 100% of the paid-up share capital. In case the joint venture companies (JVC) do not meet this requirement, the financial capability (average annual turnover) of at least one of the JVC partners on whose experience the qualification is sought, shall have to meet the turnover requirement. The major equipment to be supplied would be sourced from reputed manufacturers who have supplied at least one such equipment of at least 75% of the specified capacity during the last five years from the date of opening of the bid. Further, the bid should have operated successfully for at least one year, 7 days prior to the date of opening of the bid.

According to the CEA, for the selection of a sub-contractor for the coal-handling plant the sub-contractor should have executed at least one integrated bulk material-handling plant, other minerals or cement of equivalent volumetric capacity (comprising conveying and crushing). A sub-contractor having only conveying experience of any material should have collaborated with a design agency with experience in designing the conveying and crushing plant of the required capacity for coal or equivalent volumetric capacity for other minerals and whose designed plant has been in operation for at least one year, 7 days prior to the date of opening of the bid.

Bidders for ash-handling plants should have executed at least one ash-handling plant during the last 10 years and they should have been involved in design, engineering, manufacturing/procurement, supply, and commissioning the plant.