Uttarakhand Principal Secretary Energy Dr R Meenakshi Sundaram has issued a factual clarification on questions raised by political parties over the proposed purchase of 1,320 MW of thermal power, saying the process is being conducted under prescribed rules, competitive bidding requirements and approvals from the Uttarakhand Electricity Regulatory Commission (UERC).
Sundaram said the proposal aims to secure the state's long-term electricity requirements and is not intended to benefit any particular company. The proposed arrangement is designed to address the state's base-load power needs over a 25-year period.
Addressing concerns over the bidding framework, he explained that the Ministry of Power's 2019 Model Bidding Document serves as a general template. Differences in project technology, location, fuel availability and transportation costs require project-specific consideration. Suggestions and objections received from bidders were examined, and proposed changes were submitted to UERC, which approved the modifications following deliberations.
Five companies qualified during the Request for Quotation (RFQ) stage, according to the clarification. The subsequent Request for Proposal (RFP) process also retains competition, with the final selection to be based on the total tariff received through competitive bidding.
The tender allows the power plant to be established at any suitable location in India, taking fuel availability and transportation costs into account. Sundaram said there is no restriction on setting up a plant in Uttarakhand, provided a company offers power at a competitive rate through the prescribed process.
{{/usCountry}}The tender allows the power plant to be established at any suitable location in India, taking fuel availability and transportation costs into account. Sundaram said there is no restriction on setting up a plant in Uttarakhand, provided a company offers power at a competitive rate through the prescribed process.
{{/usCountry}}He also addressed concerns about transmission costs, saying the expenses involved in supplying electricity to Uttarakhand would be determined according to tender and tariff conditions. The financial impact on consumers would need to be assessed through the total tariff rather than the plant's location alone.
The Fixed Charge ceiling was increased from 70% to 75% after UERC approval, allowing Fuel Charge to account for up to 25%. Sundaram said this change does not automatically increase consumer liability, as final payments depend on the total tariff established through competitive bidding.
The first unit is scheduled for availability in 42 months and the second in 48 months. A proposed UJVNL-THDC joint venture was also considered but was not taken forward. The department estimates potential payments of ₹1.60 lakh crore to ₹1.66 lakh crore over 25 years, subject to contractual conditions and actual supply.