Madhya Pradesh Cabinet Clears 2,800 MW Thermal Power Purchase To Meet 2037 Shortfall
Bhopal (Madhya Pradesh): The Cabinet approved the proposal of energy department’s MP Power Management Company to procure 2,800 MW thermal power through competitive bidding process. The decision was taken after the report of power management company, which estimated a shortfall of 1,900 MW by 2037 due to rising industrialisation, growing energy need under various heads including domestic…
The Madhya Pradesh Cabinet has approved the proposal from the energy department's MP Power Management Company to procure 2,800 megawatts (MW) of thermal power through a competitive bidding process. This decision comes after the company's report, which estimated a shortfall of 1,900 MW by 2037 due to factors such as industrialization, increasing energy demand, and the necessity of domestic consumption.
The procurement will be conducted based on DBFOO (Design, Build, Finance, Own, and Operate) model bidding documents issued by the Ministry of Power. These documents will be utilized for existing and under-construction thermal power projects, as well as proposed new greenfield and brownfield thermal power projects within the state.
Notably, the approval for procuring an additional 900 MW of thermal power, which was initially delayed due to the cancellation of the relevant tender, will be incorporated into this present proposal for purchasing 2,800 MW.
The MP Power Management Company's managing director has been granted authorization to proceed with further actions in line with the regulatory commission's approvals and orders. The state has imposed two conditions on the procurement process.
The first condition stipulates that any new thermal power plant must be located within the geographical boundaries of Madhya Pradesh. Establishing such a plant would generate local employment, contribute to the local economy through material transportation requirements, and generate revenue for the state's Goods and Services Tax (GST) system.
The second condition ensures that if power plants are situated within the state, they will receive precedence in power production during emergencies, such as times of war. This preference was previously absent, as power purchases were made without considering the location of the plants. To meet the growing energy demands, thermal power has been favored as a reliable energy source. While solar and wind power are renewable options, their availability is contingent upon seasonal variations and periods of activity.
Furthermore, the state has allocated coal mines for the purpose of thermal power generation. These mines will be utilized to cater to Madhya Pradesh's thermal power requirements. As of now, only 10 out of the 8,084 notified establishments in the Bhopal Municipal Corporation have had their applications sealed, with the matter awaiting a hearing at the Supreme Court.
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