Petition No.6 of 2006

No.PSERC/Sr.AO/16/ 1642
Dated : March 20, 2006.

Reference is invited to petition No.6 of 2006 dated January 04, 2006, requesting for approval of the documents pertaining to “Request for Qualification (RFQ)” for inviting bids for participation in Tariff Based Competitive Bidding for procurement of at least 1000 MW power on Long Term Basis.

The draft RFQ and the PPA as prepared by the Board have been examined in the Commission with reference to the Guidelines issued by the Government of India, Ministry of Power, New Delhi and the Draft RFQ and the PPA documents enclosed therewith. The documents prepared by the Board are found to be in line with the Guidelines of the Government of India and the Draft Documents aforesaid except the following:

1. Clause 2.1.4 of the draft RFQ may need to be strengthened further by providing that the supplier will submit a comfort letter for fuel linkage for the entire period of supply agreement at the time of submission of the proposal in response to RFP.

2. Clauses 2.5.1.4 and 2.5.1.7 of the draft RFQ submitted by the Board needs further addition to the effect that the Bank Guarantee shall be forfeited in cases covered under these clauses so as to bring this document in line with the Draft Standard RFQ Document circulated by the Government of India.

3. As per the Draft Standard Bid Document, the period for commencement of supply should be more than 48 months. However, at page 3 of RFQ Notification ‘Commencement of Supply’ and page 5 ‘Introduction’ Para 1.5, the period for commencement of supply is indicated as within 48 months. This needs to be amended to be brought in line with the Draft Standard Bid Documents.

4. At page 5 of RFQ ‘Introduction’, Para 1.3, the installed thermal capacity of the Board has been indicated as 3263 MW. The same is, however, much less and needs to be corrected with reference to factual position.

5. At page 7 of RFQ, ‘Information Required’, the word ‘annexure’ appearing in line-2 of Para 2.4.1 needs to be replaced with the word ‘annexures’.

The PPA attached with the Petition is also as per the Draft Standard Bid Documents circulated by the Government of India, Ministry of Power, New Delhi. There is also a provision for amendment of the same after getting response on the RFQ as per Clause 5.6 (ii) of the Guidelines. As such, any amendment required to be made may be carried out at that stage.

This reference is with the approval of the Commission and disposes of the Petition No.6 of 2006 on the matter filed by the Board.

-Sd-
Secretary,
PSERC.