Business

Power auction cancelled on poor response

States feel tariff of ₹4.41 per unit high

The Power Ministry has scrapped the auction to procure 2,500MW electricity for the medium term (three years) under a scheme to provide relief to thermal power plants plagued by short coal supplies, state-run NHPC said on Monday.

According to sources, lack of interest from State power utilities due to a higher tariff of ₹4.41 per unit discovered through the reverse auction process led to the cancellation of the auction. The Ministry has now advised nodal agency PFC Consultancy to call for bids again. PFCCL had appointed NHPC as ‘Aggregator’ (in March) under Pilot Scheme-II for procurement of aggregated power of 2,500 MW.

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Printable version | Feb 19, 2020 12:45:12 PM | https://www.thehindu.com/business/power-auction-cancelled-on-poor-response/article30383162.ece

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