The above mentioned petitions have been filed by the petitioner in the capacity of authorized representative of Paschimanchal Vidyut Vitran Nigam Limited (PVVNL) and Dakshinanchal Vidyut Vitran Nigam Limited (DVVNL) for procurement of 500 MW Base Load Power each by PVVNL and DVVNL under Case-1 bidding procedure issued by the Central Government under ‘Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees’. These petitions are similar in nature and involve common issues as such are being dealt by this single order.

The petitioner intends to establish a single stage competitive bidding process for procurement of 500 MW by delivery date, not being later than 1.4.2010. Approval of the Commission has been sought in respect to deviations from standard RFP clauses 1.3.1 & 2.8.2 and standard PPA clause 3.1.1.

The Commission issued a public notice dt.14.7.09 in the newspapers for inviting comments/objections/suggestions of stakeholders and interested parties on the above mentioned petitions. None have made submissions in response to the above notice.

Sri. S.K Agarwal, Director (Finance) submitted, on behalf of the Petitioner, that process of procurement of power was being established to meet immediate requirement of power of PVVNL and DVVNL in view of shortage experienced by them. Since the delivery of power was to commence not later than 1.4.2010, deviations sought in the petition had become imminent and logical. He informed that ‘RFP’ and ‘RFP documents’ have been prepared which might be issued for inviting bids if deviations were approved by the Commission. In view of the deviations sought from provisions of clause 1.3.1 of standard RFP and clause 3.1.1 of standard PPA, the Commission enquired if the petitioner intended to procure power from existing generating station(s) or those which are to be commissioned by 31.3.2010. Sri. Agarwal replied in affirmative and stated that in light of the said delivery date, supply was possible only from existing generating stations or from those that are to be commissioned before the said delivery date and as a consequence of which, four year period specified in clause 1.3.1 of standard RFP might be relaxed as proposed in the petition and time of 10 months specified under clause 3.1.1 of standard PPA be reduced to 4 months, the period adequate to resolve the only issue of open access. On the same grounds, the Petitioner sought to squeeze the bid process time to 85 days as against 120 days specified in clause 2.8.2 of standard RFP.

In light of the arguments forwarded in support of the deviations, the Commission is of the considered opinion that the deviations, if allowed, should not pose any difficulty in the bid process. Therefore, the deviations are allowed, however the Petitioner shall hold a pre bid meeting within seven working days from the date of issue of ‘RFP and RFP documents’ for inviting bids. The Petitioner is further directed to approach the Commission if any deviation, other than that allowed in this petition, is made from standard RFP and standard RFP documents. The Petitioner shall keep the Commission informed of each stage of the bid process specified under clause 2.8.2 of RFP.