NEW DELHI: Indian government on Thursday said a slew of options are available for private players for investment in power sector for generation of electricity that include Design-Build-Finance-Operate-Transfer (DBFOT) and Build-Operate-Transfer (BOT).
Power Minister Piyush Goyal told Lok Sabha, the lower house of the Indian parliament, that the Centre has notified guidelines and model bidding documents in 2013-14 for procurement of electricity by amending earlier guidelines notified in 2005 due to inadequate treatment of fuel risks and termination provisions.
Based on the information furnished by Central Electrical Authority, Goyal said during Question Hour that the total investment made in power sector during the 11th plan by private players is Rs 2,83,805 crore and during the first two years of the 12th plan is Rs 1,17,999 crore.
For the Design-Build-Finance-Operate-Transfer (DBFOT) mode of power procurement, the project assets are required to be handed over to the utilities after successful completion of the concession period.
An option has also been given to the developer to take project assets on lease basis up to 99 years on successful completion of contract. For other modes of procurement, the project assets continue to be owned by the developers after completion of contract period.
Bidding framework based on first year tariff as evaluation parameter, instead of multiple parameters coupled with liveliest tariff concept used earlier.
Concession period for generation project is fixed for a period of 15-30 years including the construction period, with a provision for extension at the option of either the concessionaire or the utility. Yet another extension can be undertaken if both the parties so agreed, he added. -PTI
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