Centre revises standard bid documents to further ease of doing business
These documents include the Request for Proposal and Transmission Service Agreement (TSA) for award of Inter-State Transmission System (ISTS) Projects on Tariff Based Competitive Bidding
- Aug 6, 2021,
- Updated Aug 6, 2021 8:32 PM IST
The Ministry of Power took a big step towards furthering ease of doing business and promoting private sector participation in the transmission sector as on Friday it released the revised Standard Bid Documents (SBDs). These documents include the Request for Proposal and Transmission Service Agreement (TSA) for award of Inter-State Transmission System (ISTS) Projects on Tariff Based Competitive Bidding.
"The Ministry of Power is committed towards Public Private Partnership (PPP) in different spheres of power sector. Transmission is the most vital link in the power sector value chain connecting Generation and Distribution," the ministry said in a statement.
It believes that the revision of Standard Bid Documents for award of ISTS Projects on Tariff Based Competitive Bidding will enhance public-private partnership in the transmission sector and would attract more private investment.
As per the revised documents, the TSA with the selected bidder will now be signed by CTU, instead of the Long Term Transmission Customers (LTTCs). This provision is expected to help in the timely completion of the bidding process.
Following best practices in other infrastructure sectors, the provision of an independent engineer during the construction phase has been included in the revised documents. According to the Power Ministry, this will help in reducing the number of disputes.
The Power Ministry had found out the completion of many transmissions was delayed due to an imprecise line route survey being handed over to the bidders during the bidding process. Now, the Ministry had made provisions for the preparation of transmission line route survey in advance which is expected to ensure its accuracy. Bidders will no longer have to do their own survey before bidding.
The ministry had also truncated the time period of the entire bidding process from 145 days to 91 days. In order to enhance competition, the Ministry had allowed EPC contractors to participate in the bidding process if they meet certain requirements. As per the release, the ministry had changed the mode of execution of such projects from Build-Own-Operate-Maintain (BOOM) to Build-Own-Operate-Transfer (BOOT).
"Provisions relating to change in law, termination and consequential payments have been changed to bring more clarity and to reduce risk perception to the bidders," noted the Ministry. In order to promote ease of doing business, bidders are now required to quote one transmission tariff for the actual Transmission Service Agreement (TSA) period.
Also Read: India's power consumption back to pre-COVID level in July; up 12% to 125.51 bn units
Also Read: Decommissioning coal power plants older than 25 years could save Rs 37,000 cr, reveals study
The Ministry of Power took a big step towards furthering ease of doing business and promoting private sector participation in the transmission sector as on Friday it released the revised Standard Bid Documents (SBDs). These documents include the Request for Proposal and Transmission Service Agreement (TSA) for award of Inter-State Transmission System (ISTS) Projects on Tariff Based Competitive Bidding.
"The Ministry of Power is committed towards Public Private Partnership (PPP) in different spheres of power sector. Transmission is the most vital link in the power sector value chain connecting Generation and Distribution," the ministry said in a statement.
It believes that the revision of Standard Bid Documents for award of ISTS Projects on Tariff Based Competitive Bidding will enhance public-private partnership in the transmission sector and would attract more private investment.
As per the revised documents, the TSA with the selected bidder will now be signed by CTU, instead of the Long Term Transmission Customers (LTTCs). This provision is expected to help in the timely completion of the bidding process.
Following best practices in other infrastructure sectors, the provision of an independent engineer during the construction phase has been included in the revised documents. According to the Power Ministry, this will help in reducing the number of disputes.
The Power Ministry had found out the completion of many transmissions was delayed due to an imprecise line route survey being handed over to the bidders during the bidding process. Now, the Ministry had made provisions for the preparation of transmission line route survey in advance which is expected to ensure its accuracy. Bidders will no longer have to do their own survey before bidding.
The ministry had also truncated the time period of the entire bidding process from 145 days to 91 days. In order to enhance competition, the Ministry had allowed EPC contractors to participate in the bidding process if they meet certain requirements. As per the release, the ministry had changed the mode of execution of such projects from Build-Own-Operate-Maintain (BOOM) to Build-Own-Operate-Transfer (BOOT).
"Provisions relating to change in law, termination and consequential payments have been changed to bring more clarity and to reduce risk perception to the bidders," noted the Ministry. In order to promote ease of doing business, bidders are now required to quote one transmission tariff for the actual Transmission Service Agreement (TSA) period.
Also Read: India's power consumption back to pre-COVID level in July; up 12% to 125.51 bn units
Also Read: Decommissioning coal power plants older than 25 years could save Rs 37,000 cr, reveals study