About Tariff Based Competitive Bidding (TBCB) Process :
Ministry of Power, Gol notified ‘Guidelines for encouraging competition 31 development of the Transmission Projects' and "Tariff. based competitive bidding Guidelines for Transmission Service’ in April, 2006 in pursuance to Electricity Act and with a view to attract private investment in transmission projects. in line with these provisions, Ministry of Power, Got notified the Standard Bidding Documents in 2008.
Ministry of Power, Gol also notified two Bid Process Coordinators (“BPCs’) for conducting bidding process:
- REC Transmission Projects Company Limited &
- PFC Consulting Limited
Till date, 32 inter-state transmission projects have been awarded through Tariff based competitive bidding (“TBCB”) route. Out of these, 6 projects have been commissioned.
In addition to efficiency & competition bought in the sector through TBCB process, the transmission tariff discovered through TBCB process has ultimately benefited the Electricity Consumers in India.
About “e-Trans”: Web Portal for e-bidding and e-Reverse Auction
Good Governance for citizens is endeavour of every Government. Key to good governance lies in transparency & information Technology is a major faci itator for the same.
With this perspective of good governance, and keeping in line with the “Digital lndia” initiative of Government of indie, there is a need to establish an it" based Platform to bring more transparency, efficiency and competition in transmission sector.
Taking this forward, REC Transmission Projects Company Limited and PFC Consultancy Ltd. under the guidance of Ministry of Power, Govt. Of lndia, have developed an On-line web platform “e-Trans” for e~Bidding and e-Reverse Auction for Transmission Projects being awarded through Tariff based Competitive bidding process. This web portal has been developed in association with. MSTC and it facilitates more competition in the sector by introduction of e-Reverse Auction.
Revised Bid Methodology by introduction of e-bidding & reverse auction
- The bidding process shall contain same two stages:
- Request for Qualification (RfQ) and
- Request for Proposal (RfP)
- During RfQ stage, the bidder has to submit its bid on line
- The RfP bid has three parts: Non-Financial, Financial bid (Initial Price Offer) and Reverse Auction stage (Final Price Offer).
- Bidder shall submit both Non-Financial and Initial Offer in electronic form. initial Price offer in the form of Levelised Transmission Charges of qualified bidders is ranked in ascending order.
- Qualified Bidders holding first 50% of the ranks or four Qualified Bidders, whichever is higher, allowed to participate in the electronic reverse auction. In case Of bidder between two and four, all can participate in electronic reverse auction.
- The lowest levelised Transmission Charges derived from the Initial Offer ' is the applicable ceiling Levelised Transmission Charges for electronic reverse auction.
- The Bidders participating in the reverse auction shall submit Final Offer on the electronic bidding platform, which should be lower than 0.25 % of the prevailing lowest Levelised Transmission Charges.
- Initially, the window for the e-reverse bidding Will be for 2 hours and with auto extension facility if fresh bid is received Within the last 30 minutes before the completion of 2 hours
- In case of receipt of no bid within the 30 minutes before the Completion of 2 hours, the bidding window will be closed. Bidder with lowest Final Price shall be declared Successful bidder .
- Ministry of Power
- Central Electricity Authority(CEA)
- Central Transmission Utility
- Power Grid Corporation of India Ltd. (PGCIL)
- Private Transmission Service Providers
- State Transmission Companies and Distribution Companies Generating Companies
- RECTPCL and PFCCL
Advantages of e-bidding & e-reverse auction
- Better Price Discovery: As the bidder shall get chance to revise its bid during reverse auction stage, better price discovery is envisaged.
- Convenience to bidders for bidding: The bidder can bid from any part of world from its office and participate during auction without physically present at the time of process.
- Increased Transparency: Electronic platform shall increase transparency.
- A step towards e-governance: in line with the endeavor of Govt. of indie, this is step closer to e-Governance to have minimum human intervention in the process and to bring confidence in bidders/investors.