Guwahati: AERC nod to APDCL’s 3,200 MW thermal plant bid proposal

Staff Reporter

Guwahati: In a significant move to boost Assam's long-term power security and industrial growth, the Assam Electricity Regulatory Commission (AERC) has granted in-principle approval to Assam Power Distribution Company Limited (APDCL) for floating a tender to procure 3,200 MW of coal-based thermal power under Section 63 of the Electricity Act, 2003.

The power will be procured through tariff-based competitive bidding from thermal power plants to be established in Assam under the Design, Build, Finance, Own, and Operate (DBFOO) model. APDCL proposed a phased commissioning plan with the first 800 MW unit expected by December 2030, and subsequent tranches of 800 MW every six months thereafter.

During the hearing, APDCL highlighted the rising power demand in the state. The state's power demand has already reached 2,809 MW in FY 2024-25 with a Compound Annual Growth Rate (CAGR) of 7.88%. Industrial growth, especially under the "Advantage Assam 2.0" initiative, is expected to add an additional demand of around 1,000 MW by 2032-33 and 1,500 MW by 2035-36. Consequently, Assam is projected to face a shortfall of 3,353 MW by 2032-33 and 5,169 MW by 2035-36 if new capacities are not added.

APDCL sought approval for deviations in the standard bidding documents (SBDs) issued by the Ministry of Power in 2019, according to which the capital cost of the project should be more than Rs. 100 crore. However, APDCL has modified this clause to Rs 2,500 Cr. According to APDCL, since the bid involves the development of a new power station, only serious participants with rich experience in the development of capital-intensive projects should be permitted to ensure reliable completion of the project. Hence, the capital cost threshold was proposed to be increased.

The Commission raised queries regarding these deviations, especially the removal of the damages-for-delay clause and the significant increase in capital eligibility. APDCL justified these by citing the need for reliable project completion and encouraging investment in Assam's thermal power sector under the state's new Assam Thermal Power Generation Promotion Policy, 2025.

The policy aims to add 5,000 MW of capacity by 2035 and offers multiple incentives, including government-funded transmission infrastructure and coal linkages under the SHAKTI Policy. APDCL also identified land at Chapar in the Dhubri district with strong road, rail, and grid connectivity for setting up the plant.

The Commission examined in detail the petition filed by APDCL, as per the provisions of the Electricity Act, 2003, AERC Regulations, the Model SBD by the Ministry of Power, and other details presented before it.

The Commission, after detailed scrutiny, has granted in-principle approval to the draft Request for Quotation (RFQ), Request for Proposal (RFP), and Power Supply Agreement (PSA) documents, allowing APDCL to proceed with the bidding process.

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