Document Fragment View

Matching Fragments

―(f) Eligibility in case of generation of power being the specified end use:
A person engaged in captive generation of power as defined in the Electricity Act, 2003 and the rules thereunder; or generation of power under Case 2 as specified in the Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees, dated January 19, 2005, as amended, shall not be eligible to participate in the tender process.‖ The Attorney General submitted that power generation, transmission and supply are regulated under the Electricity Act, 2003, whereas captive power plants are deemed to be in the non- regulated power sector. Therefore, the mode of auction for the regulated power sector is by way of reverse auction and this mode cannot be applied to the non-regulated captive power plants and that is why captive power plants have been excluded from the standard tender documents.

30. Insofar as the issue of splitting generation of power for captive use from generation of power is concerned, we are of the view that perhaps there is a logic behind this. The auction process for independent power plants is reverse bidding whereas the auction process for captive power plants is forward bidding. Therefore, the two cannot be, according to the respondents, placed in the very same auction. This is perhaps reasonable but at the same time captive power plants ought to have been dealt with independently and separately and not clubbed together with ‗cement' and ‗iron and steel'.