PTC changes short-listing strategy for Pipavav project

NEW DELHI, Aug 25: In a major change in strategy, the newly formed Power Trading Corporation PTC has decided to short-list all 13 applicants who had applied for the Requests for Qualification RFQ for setting up the 2000-mw Pipavav mega power project at the cost of Rs 8,000 crore. In the second stage these companies will now be required to submit tariff bids 8212; the company bidding the lowest tariff for power generation would be awarded the project.

The Pipavav project is extremely important for the PTC which was recently incorporated by the Government as the single window which would buy power from mega projects and sell this to various states on a strictly commercial basis. Pipavav, in Gujarat, is the first mega project being evaluated by the PTC which will include selection of companies for setting up the mega power project.

PTC has been set up with 30 per cent equity participation from PGCIL and 15 per cent each from National Thermal Power Corporation NTPC and Power Finance Corporation PFC. The remaining 40 per cent is supposed to be invested by financial institutions. The FIs have been wary of any investments in projects which involve the SEBs which have poor track record in paying for power consumed by their state.

With the PTC in place, Independent Power Producers IPP would not have to sign multiple PPAs power purchase agreements with different SEBs. In fact, PTC would be the central agency which will buy power from mega projects and sell it to different states.