NEW DELHI: Maharashtra State Electricity Distribution Company Ltd's (
MSEDCL
) bid to contract 6,600 MW power for meeting projected demand in
2033-34
has hit
regulatory bump
over deviations sought in standard bid norms.
In response to MSEDCL's application for "urgent" hearing on the matter, the Maharashtra Electricity Regulatory Commission on June 25 ordered the state distribution company to explain why these were not incorporated before starting the tender process and "demonstrate in quantifiable terms" their benefit to consumers.
The tender in question was floated in March 2023, just before the model code for the Lok Sabha elections kicked in, and seeks to tie up 1,600 MW
thermal power
and 5,000 MW
solar power
.
The regulator has given MSEDCL seven days to explain the rationale for considering combined purchase of solar and thermal power from a single entity; and whether this will be the principle followed for all future thermal power procurement.
The order pointed out limitations in wheeling power from outside the state, which can be an impediment since the combined purchase from a single entity leaves the scope for generation capacity being located outside the state.
Referring to the long lead time of 10 years for the contract, the order sought clarity on whether it will result in stranded capacity since the commissioning of the project will start in the next 2-4 years and whether MSEDCL has tied up sufficient power for meeting the projected demand before 2033-34.
MSEDCL's plea for urgent hearing for approval to the proposed
bid deviations
are being seen as an attempt to conclude the bidding process in July, before the model code for the October assembly elections kick in.
The scale of investment required in generation capacity for meeting MSEDCL's requirement is estimated in the region of Rs 40,000 crore. Industry watchers say tying up finance and arranging other project essentials such as land, equipment supply, land, water and transmission facility take time and could lead to limited participation.
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