Question : TARIFF BASED BIDDING FOR POWER PROJECTS

(a) whether the Government proposes to make tariff based bidding mandatory for allocation of power projects from January, 2011;

(b) if so, whether the aggressive bidding by private players have Ultra Mega Power Projects (UMPP) tariffs quite low;

(c) if so, whether the PSUs who don`t enjoy the flexibility of private firms have not won any UMPP:

(d) if so, whether currently States have freedom to allot projects exclusively to Public Sector Undertakings (PSUs) they own;

(e) if so, by what time final decision in this regard is likely to be taken and to what extent it has been accepted by the PSUs;

(f) whether the Government has met the State Ministers to decide on shift from cost plus mode; and

(g) if so, the reaction of the State Ministers on this proposal?

THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI BHARATSINH SOLANKI)

(a): Government of India vide Resolution dated 6th Jan. 2006 notified Tariff Policy which inter alia stipulates that all future requirements of power should be procured competitively by distribution licensees. Even for public sector projects, tariff of all new generation and transmission projects should be decided on the basis of competitive bidding after a period of 5 years or when the Regulatory Commission is satisfied that the situation is ripe to introduce such competition.

(b): The tariff for the four Ultra Mega Power Projects awarded through competitive bidding route is as below:

Sl.No.	PROJECT	Name of	No. of	Date of	Source of	Levelised	Bidder	units	LOI	Coal Supply	Tariff
1	SASAN(M.P)	Reliance	6X660	1.8.2007	Captive coal	1.196	Power Ltd.	block
2	MUNDRA	Tata PowerLtd.	5X800	28.12.2006	Imported	2.264	(Gujarat)
3	Krishnapatnam	Reliance	5X800	30.11.2007	Imported	2.333	(Andhra	Power Ltd.	Pradesh)
4	TILAIYA	Reliance	6X660	12.2.2009	Captive coal	1.770	(Jharkhand)	Power Ltd	block