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The Ministry of Power on Tuesday said it is now mandatory to procure transmission services for new projects through tariff-based competitive regime.
“The intra-state transmission projects would also be moving to the tariff-based competitive system from January 2013 as per the tariff policy,” the Ministry of Power said in a statement.
Till now, eight inter-state transmission projects worth Rs 14,000 crore have been allotted through competitive bidding, it added.
Standard bidding document
For implementing the tariff-based regime against cost plus earlier, the Ministry of Power has put in place a Standard Bidding Document that has been used by some intra-state transmission projects.
VGF model
Also, a Viability Gap Funding (VGF) model has been evolved for which a Model Transmission Agreement (MTA) was developed by the Planning Commission.
The Ministry of Power has asked all states and union territories to use either VGF-based MTA Document or the Standard Bidding Document for procurement of intra-state transmission services.
The MTA has provision for VGF and evaluation of bids would be based on minimum grant quoted by bidders. It also determines the tariff through a transparent process of bidding, the statement said.
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