MSTC Limited, the premier e-Commerce PSU of the country, has been assigned the job of developing a national e-bidding portal by the Union Ministry of Power for establishing power purchase agreements by the power distribution companies and licensees.
The Ministry of Power had issued standard bidding documents for the distribution companies and licensees in the country to enter into power purchase agreements with power generators and traders on long, medium and short term basis.
This is another mile-stone towards strengthening the resolve of the present government to bring in transparency and efficiency in the functioning through use of information technology and e-commerce. MSTC takes pride to provide such service. Power Finance Corporation Consulting Limited (PFCCL), will team up with MSTC in the development and operation of the national e-bidding portal.
During a meeting taken by the secretary power on Thursday, it has been decided that the portal shall be made operational by end of January 2016 and the first phase will be implemented for short term power purchase agreements which means power purchase contracts for more than 15 days and up to one year.
Thereafter, the power purchase contracts for medium term (more than one year and up to five years) will be introduced in the portal. Finally, the long term PPAs will be settled through the portal. The bidding process shall involve multi stage bidding like online RFQ, RFP and e-reverse auction. As a pan India portal, the system is expected to create greater opportunity for the power buyers and sellers and the power tariff is expected to become cheaper and more affordable to consumers. Thus, the government is heading towards an electronic era in the energy sector which can revolutionise the sector and bring in more investors in the future. MSTC was earlier appointed by the government to carry out the e-auction of the coal blocks cancelled by the Supreme Court in September 2014. The fourth tranche of allocation of these coal blocks is presently going on and the auctions are scheduled to be conducted from 18th to 22nd January 2016.
In between MSTC has also conducted two phases of e-reverse bidding for Ministry of Power for identifying the beneficiaries of the subsidy being provided by the government from the Rs 7500 crore Power System Development Fund to the stranded and domestic gas based power plants in the country.
The process has so far enabled the government to revive about 4700 mw of power generating capacity. MSTC has also been engaged by the Union Ministry of Mines to provide the e-auction platform for allotment of mineral mines across all the states pursuant to the amendment of the MMDR Act.