The tender is along the lines of the guidelines for the recent federal tenders issued by the Solar Energy Corporation of India (SECI) and requires bidders to put up competitive bids under the reverse auction system.
Like the federal tender, this tender allows bidders to bid for projects ranging from 50MW to 500MW at any location, and successful bidders are required to commission the awarded projects within 18 months.
NTPC’s power trading arm NTPC Vidyut Vyapar Nigam (NVVN) will enter into a 25-year power purchase contract with the bid winners. The deadline for bid submission is 25 April 2018.
NTPC launched the tender after a policy change that removed interstate transmission charges for all wind and solar projects commissioned before 31 March 2022.
This ruling allowed non-government players to participate in the wind market.
The tender is expected to get good response from the industry as NTPC is a respected player in the power sector and is financially strong.
This tender effectively sets the precedent for other large state-owned institutions like railways and oil companies to take the auction route, further opening up the market.