Maharashtra Power Tender Irregularities: MERC Flags ₹40,000 Crore Discrepancies
The Maharashtra Electricity Regulatory Commission (MERC) has found discrepancies in a power tender worth ₹40,000 crore issued by the Maharashtra State Electricity Distribution Company Ltd.
MercMsedclPower TenderMaharashtraElectricity Regulatory CommissionReal Estate MaharashtraJul 02, 2024
In a scathing order against the MSEDCL, the MERC sought justification from the state power distributor for not approaching it before starting bidding for the mega tender to procure 1,600MW of coal-based thermal power and 5,000MW solar power for Maharashtra from private players.
The MSEDCL had approached the commission for an urgent hearing, to seek approval for 'deviations in standard bidding documents' for long-term procurement of power. However, senior MERC officials found several discrepancies, including lack of prior regulatory approval, full tender to a single bidder, no part-capacity bidding allowed as per TBCB guidelines, deviation in bidding sought after issuing tender, and rules on weighted average tariffs not being followed.
The Tariff-Based Competitive Bidding (TBCB) Guidelines and National Tariff Policy (NTP) explicitly mandate the promotion of competition and efficient resource utilisation, and underscore the importance of transparency and competition. The MERC has sought an explanation from the MSEDCL for the rationale behind considering the combined power procurement of solar and thermal through a single entity and clarifying whether all future thermal power procurement would be on the same principle.
The commission has also demanded that the MSEDCL submit a transmission capacity addition and strengthening plan to coincide with the proposed power procurement process. The electricity regulator order has stated that during solar hours, the thermal unit will run on a technical minimum and will be subsequently ramped up during non-solar hours.
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Frequently Asked Questions
What is the value of the power tender issued by MSEDCL?
The value of the power tender is around ₹40,000 crore.
What is the purpose of the power tender?
The purpose of the power tender is to procure 1,600MW of coal-based thermal power and 5,000MW solar power for Maharashtra from private players.
What are the discrepancies found by MERC in the power tender?
The discrepancies found by MERC include lack of prior regulatory approval, full tender to a single bidder, no part-capacity bidding allowed as per TBCB guidelines, deviation in bidding sought after issuing tender, and rules on weighted average tariffs not being followed.
What has MERC demanded from MSEDCL?
MERC has demanded that MSEDCL submit a transmission capacity addition and strengthening plan to coincide with the proposed power procurement process.
What is the significance of the MERC order?
The MERC order is significant as it highlights the importance of transparency and competition in the bidding process for power projects.
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