Telangana government has called for bids to produce 2000 MW of Power from Private Thermal Stations on a long term basis. But the response for the call is more or less very disappointing. The bids called for a seven years term starting from October 2016 met with a road block as Telangana government’s conditions mentioned are not in tune with the standard bidding documents and guidelines of the Union power ministry.
The seven year term do not fall in the long-term or in the medium-term definitions of the power ministry. The banks and other financial institutions have declined to fund these projects as they are not in tune with regulations. Several private players who generally would have been interested did not submit the bids.
Telangana State Southern Power Distribution Compant Ltd (TSSPDCL), which floated tenders on behalf of the two discoms of Telangana has now appealed to the Center to allow the seven years term. In case they do not allow, TSSPDCL is planning to call for bids to five years term and later extend it for 2 more years. These entire confusions will involve lot of time being wasted.
