The deadline for submission of technical bids by gas-based power plants seeking PSDF (Power System Development Fund) support for using imported natural gas has been extended for a second time.

The bids, which were originally supposed to be opened on May 2, are now scheduled to be opened on May 8.

While the Ministry of Power said that the extension of deadline is on the request of the bidders, industry sources indicated that the real reason could be few takers for running their plants on imported gas despite the PSDF support.

A total of 54 gas-based plants are eligible to participate in the technical bid stage which is being held under two categories – those receiving some domestic gas and those that are completely stranded. The plants belong to companies, such as Lanco, GMR, GVK, Reliance Power, Tata Power Delhi Distribution Ltd, Essar Power and others.

“There are several concerns relating to the e-auctions. There is no guarantee whether the State government where the plant is located will extend waiver of various taxes. If that does not happen, the winner becomes ineligible and yet loses the bid security,” an industry official said.

“Similarly, bid security will be lost if the power plant cannot find a buyer. There are genuine concerns on whether distribution utilities will be interested in the purchase of power despite the incentives,” the official said.

In March, the Cabinet Committee on Economic Affairs had approved the scheme to provide a support through the PSDF and help revive nearly 24,000 MW of gas-based power plants in the country.

If the technical bids are opened on May 8, the e-auction is scheduled to begin on May 11.

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