The Ministry of Power has proposed that state government-controlled power buyers will secure an assured coal supply for Ultra Mega Power Plants. The procurers will also commit buying the entire power from the UMPP that will be developed on a Build, Own and Operate (BOO) basis, according to the proposal.
In the draft Standard Bidding Documents and Guidelines for UMPPs based on allocated Coal Linkage, the Power Ministry has proposed that the procurers shall obtain, “A Letter of Assurance from the coal supplier for the supply of coal on a linkage basis for the entire duration of the PPA (Power Purchase Agreement), for being used and utilised exclusively for the purposes of the Project.”
The bidder whose evaluated tariff as per the evaluation procedure is the lowest, shall be considered as the successful bidder for the award. However, the Evaluation Committee shall have the right to reject all the price bids if the rates quoted are not aligned with the prevailing market prices.