+
Maharashtra's 6600 MW power tender under regulatory scrutiny
POWER & RENEWABLE ENERGY

Maharashtra's 6600 MW power tender under regulatory scrutiny

The Maharashtra State Electricity Distribution Company (MSEDCL) has issued a 6,600 MW tender for long-term power procurement, now under review by the Maharashtra Electricity Regulatory Commission (MERC). MSEDCL applied for approval for deviations in the standard bidding documents, but MERC, in a June 25 order, questioned why this approval was not sought before the bidding process began. MERC directed MSEDCL to quantify how the proposed deviations benefit consumers.

In March, MSEDCL issued a tender for 1,600 MW of thermal power and 5,000 MW of solar power in Maharashtra, just before the model code of conduct for the Lok Sabha elections was enforced. The power procurement is intended to meet the demand for 2033-34, a decade from now.

MERC's order required MSEDCL to clarify whether the early commissioning, starting in 2 to 4 years, would result in any stranded capacity. The regulator also sought confirmation that MSEDCL had secured sufficient power to meet projected demand before 2033-34. Additionally, MERC asked MSEDCL to explain the rationale for combining solar and thermal power procurement from a single entity and whether future thermal power procurements would follow this approach.

According to sources, MSEDCL aims to finalize the tender by July, before the state election code of conduct is issued for the October 2024 elections. An industry source indicated that projects of this magnitude would need around Rs 400 billion in investment. Interested parties must secure offers from equipment suppliers, arrange financing, and procure essentials such as land, water, and transmission for participation in the tender.

The Maharashtra State Electricity Distribution Company (MSEDCL) has issued a 6,600 MW tender for long-term power procurement, now under review by the Maharashtra Electricity Regulatory Commission (MERC). MSEDCL applied for approval for deviations in the standard bidding documents, but MERC, in a June 25 order, questioned why this approval was not sought before the bidding process began. MERC directed MSEDCL to quantify how the proposed deviations benefit consumers. In March, MSEDCL issued a tender for 1,600 MW of thermal power and 5,000 MW of solar power in Maharashtra, just before the model code of conduct for the Lok Sabha elections was enforced. The power procurement is intended to meet the demand for 2033-34, a decade from now. MERC's order required MSEDCL to clarify whether the early commissioning, starting in 2 to 4 years, would result in any stranded capacity. The regulator also sought confirmation that MSEDCL had secured sufficient power to meet projected demand before 2033-34. Additionally, MERC asked MSEDCL to explain the rationale for combining solar and thermal power procurement from a single entity and whether future thermal power procurements would follow this approach. According to sources, MSEDCL aims to finalize the tender by July, before the state election code of conduct is issued for the October 2024 elections. An industry source indicated that projects of this magnitude would need around Rs 400 billion in investment. Interested parties must secure offers from equipment suppliers, arrange financing, and procure essentials such as land, water, and transmission for participation in the tender.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Assam Gets Approval For 350,000 PMAY Homes

Assam Chief Minister Himanta Biswa Sarma met Union Agriculture Minister Shivraj Singh Chouhan in New Delhi, where the minister handed an approval document for 310,000 new homes under the Pradhan Mantri Awas Yojana. The chief minister subsequently posted on X expressing gratitude and noting that the minister had formally handed approval for 380,000 homes as well. The release and the social media post contained varying figures, with broader references to 350,000 homes reported in some summaries. The approvals carry central assistance equivalent to Rs 50 billion (bn), corresponding to the five th..

Next Story
Infrastructure Urban

KPIGreen Achieves Highest Energised Capacity of 630+ MW DC

KPI Green Energy energised more than 630 MW DC of capacity in the June to August quarter, marking the highest quarterly addition in the company's history. The capacity was brought online across its Independent Power Producer (IPP) and Engineering, Procurement and Construction (EPC) businesses. The company said the achievement reflected the scale, speed and consistency of its project execution engine. The firm described the quarter as a material operational milestone since its founding. The milestone covers a diversified mix of IPP assets and projects executed under the EPC vertical, spanning u..

Next Story
Infrastructure Energy

Adani Energy Solutions Wins Rs 47 bn Maharashtra Transmission Project

Adani Energy Solutions has won a transmission contract in Maharashtra valued at Rs 47 billion (Rs 47 bn) to evacuate 4,500 megawatt (MW) of renewable and storage power. The company informed exchanges that the project will facilitate pumped storage potential near Satara and strengthen the inter-regional corridor between the Western and Southern grids. The award follows a competitive bidding process and will support renewable energy evacuation to major load centres in the state. The scope includes establishment of a 765/400 kV substation at Satara, construction of a Kolhapur-Satara 765 kV double..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code