New bidding norms for thermal power projects are likely to be finalised by December 2012.

The Ministry of Power has provisionally finalised the new standard bidding documents. The ministry has proposed having separate set of bidding norms for coal linkage and captive coal projects for the domestic fuel-based projects whereas no changes are being proposed in the present bidding norms for projects based on imported coal.

The new documents have proposed that the projects where the location of the plant is not specified the bidding will be done amongst the domestic coal linkage holders who have uncontracted capacities under long term PPA through competitive bidding.

 The use of surplus coal from a mine allotted to one particular project for another project has come under the scrutiny of CAG. Earlier, an Empowered Group of Ministers (EGoM) in a particular case had allowed use of surplus coal in 2008.