Bhopal (Madhya Pradesh): The Cabinet approved the proposal of energy department’s MP Power Management Company to procure 2,800 MW thermal power through competitive bidding process.
The decision was taken after the report of power management company, which estimated a shortfall of 1,900 MW by 2037 due to rising industrialisation, growing energy need under various heads including domestic consumption.
The procurement will be done on the basis of DBFOO (Design, Build, Finance, Own and Operate) Model bidding documents issued by Ministry of Power from existing and under construction thermal power projects as well as proposed new greenfield and brownfield thermal power projects in state.
The approval for procurement of 900 MW of thermal power accorded by the Cabinet on January 24, 2025, following cancellation of concerned tender will be subsumed into the present proposal meant for buying 2,800 MW.
Managing director of MP Power Management Company has been authorised to undertake further action in accordance with the approvals and orders of Regulation Commission.
State adds two conditions
Sources in energy department said that Government of India (GoI) has prepared the bidding conditions but gave relaxation to the states to add some of their conditions for their benefit.
Madhya Pradesh has added two conditions. The first condition is that if thermal power plant has to be established then it should be in the limits of Madhya Pradesh.
When any such plant will come up within state then it would indirectly generate local level jobs and will contribute to local economy as it will need transportation facility for supplying materials and so on. All such activities will also contribute into state’s GST as well.
Second, when power plants will be within its limit then state will get preference in power produced by such plants in condition of emergency such as war.
Previously power purchase was done irrespective of fact that power plant is situated in other states.
Meanwhile, thermal power purchase has been preferred as it is a reliable energy model.
The power produced from other power sources such as solar and wind depends on season and are available only for a limited period of the year. Moreover, coal mine has been allotted to state for thermal power need.
