The power ministry has sought views of the central electricity regulator on the proposed changes in the standard bidding guidelines. The ministry?s proposal to vest ownership of project land in power buying utility, instead of the selected developer, is being opposed by both power companies and bankers.
?The power ministry has sought CERC?s comments. The commission is studying the proposed bidding guidelines and will shortly give its views under Section 79 (II) of the Electricity Act,? Pramod Deo, chairman, central electricity regulatory commission, told FE. The ministry can seek statutory advice from the regulator under this section.
A banker told FE that project developers always take into account the likely cost of land after completion of power purchase agreement (PPA) term while finalising their bids. If ownership is to be vested in the discom, who will, in turn, lease the land to the selected developer, bidders will increase their tariff accordingly.
?If electricity tariff has to be kept low, ownership of project must vest in the developer and not the discom,? the banker told FE on the condition of anonymity.
