Petition No.7 of 2008
Date of Hearing : 15.4.2008
Date of Order :17.04.2008

Talwandi Sabo Power Limited (TSPL) filed this petition on 20.3.2008 seeking approval of deviations in the standard RFP document under clause 5.16 of the Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by the Distribution Licensees (Guidelines issued by the Ministry of Power, Govt. of India through Notification No.23/11/2004-R&R Vol.II dated 19.1.2005) including subsequent amendments.

2. The petitioner has informed that the RFP documents for the project were issued in line with the standard bidding documents and Commission’s Order dated 8.11.2007 on Petition No.29 of 2007 and has further prayed that the Commission may allow modification of the standard RFP document by adding an incentive formula for early commissioning of the project detailed in para 1.5 (iv) of the Petition. The Commission in its Order dated 1.4.2008 directed TSPL to seek the response of all pre-qualified bidders to the proposed incentive clause. TSPL has since intimated that out of a total of nine pre-qualified bidders, seven purchased RFP documents of which four have sent in their responses.
   
   
3. The Commission observes that as per para 1.5 (iv) C of the Petition, the Scheduled Commercial Operation Date will not change with early commissioning of the generating unit(s). During the hearing of the petition on 15.4.2008, the petitioner clarified that additional incentive is payable over and above the full tariff i.e. fixed cost plus variable cost. The Commission, on careful perusal of the petition and the responses of pre-qualified bidders, is of the view that there is sufficient incentive for a developer when full tariff is paid instead of variable charges only, as provided in the PPA. However, the tariff payable from the date of early commissioning upto the Scheduled COD will be the same as would have been payable at the time of the Scheduled COD and the term of the PPA will remain the same i.e. starting from the Scheduled COD and not preponed from the date of early commissioning. Accordingly, the Commission is inclined to allow the inclusion of the incentive clause in the RFP document as proposed by the petitioner but limited to the payment of full tariff only without any additional per unit incentive and accept the deviation on this account under clause 2.6 of the standard RFP document and clause 5.16 of the “Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees”, issued by the Ministry of Power, Government of India.