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CEA’s norm for Govt-funded power projects

Monday, 23 May 2016
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The Central Electricity Authority (CEA) wants government-funded power projects to use locally-made equipment and material procured through domestic competitive bidding.  The move might trigger litigations from foreign players on grounds of bias towards domestic players.

The CEA pointed out that all projects funded by Power Finance Corporation and Rural Electrification Corporation, including Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), Restructured-Accelerated Power Development & Reforms Programme (R-APDRP), and Integrated Power Development Scheme, would have to procure equipment and material locally.

In case they are not available locally, foreign players can participate in tenders only in consortium or joint venture with local players, provided they establish an Indian manufacturing facility through a phased manufacturing programme.

Therefore, in domestically-funded projects of the ministry of power, central public sector undertakings (CPSUs), projects funded by PFC, REC, or by state power utilities, procurement of equipment and material should be made from domestic manufacturers through local competitive bidding only.

If international competitive bidding procedure for tendering is to be resorted to, the quoted price shall invariably be in Indian rupee only, to create a level playing field.

 
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