New Delhi: As electricity prices soar with demand growing, Gujarat Urja Vikas Nigam Limited (GUVNL) has invited bids from independent power producers (IPPs) for 1,000MW of electricity on a short-term basis, for eleven months, from August 1, 2018 to June 30, 2019.
Bids have been invited under the central government’s policy allowing flexible utilization of domestic coal at power generating stations. Also known as coal tolling, this mechanism allows more fuel-efficient power producers to generate electricity using coal allocated to public sector power utilities and supply the electricity so generated back to the utility at a tariff discovered through bidding.
According to the tender document released by GUVNL, its subsidiary Gujarat State Electricity Corporation Limited (GSECL) will provide coal to the successful bidder from mines allocated to GSECL. The coal will be made available from the Korea Rewa coalfield in Madhya Pradesh and Korba coalfield in Chhattisgarh. GUVNL has fixed a ceiling tariff of Rs 3.01 per unit. The last date for submitting bids is June 22.