PFC Consulting invites bids for supply of 4,500 MW power on FOO basis to 5 states

New Delhi: State-owned PFC Consulting Ltd has invited bids for the supply of 4,500 MW power for five years on Finance, Own and Operate (FOO) basis, beginning from April 2023 to different utilities in five states: Delhi, Maharasthra, Madhya Pradesh, Gujarat and Tamil Nadu. The document seeking request for proposal also showed that five utilities have shown interest for procuring as much as 3,910 MW of power. PFC Consulting, acting as a demand aggregator, will get supply of power through tariff-based competitive bidding from power generators. "The authorised representatives/utilities have decided to procure electricity from a power generating station that would dedicate a contracted capacity of 4,500 MW for production of electricity and supply thereof for a period of five years through public-private partnership," PFC stated in the document.

5 companies showed interest; Dec 21 is the last date to submit bids

The utilities that have evinced interest for the scheme are Gujarat Urja Vikas Nigam Ltd (1000MW), Maharashtra State Electricity Distribution Company Ltd (500MW), Madhya Pradesh Power Management Company Ltd (660MW), New Delhi Municipal Corporation (250MW) and Tamil Nadu Generation and Distribution Corporation Ltd (1500MW), said PFC Consulting, which is a subsidiary of Power Finance Corporation (PFC). It also stated that the last date for the bid submission is December 21. After completing the bidding procedure, the letter of award for the supply of power would be given in January 2023.

Govt issues norms for power procurement on FOO basis, suggests making PFC nodal agency

Initiative would help states that are facing power shortage & increase capacities of power generating plants

An official said that more states are likely to join the scheme and therefore the quantum of power supply has been kept higher at 4,500 MW. "The supply of power under the power purchase agreement for medium-term or five years must begin in April 2023," said an official. The official added that the move would help the states that are facing power shortage and also help generation plants to increase their capacities.

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