Notwithstanding the grand plans of the UP government to add fresh power generation capacity of over 18,000 MW during the 11th plan period ending in March 2012, the UP Power Corporation Ltd (UPPCL) has accelerated its efforts to procure as much as 5,000 MW of power from independent power producers (IPP).

The Corporation has planned the procurement in two phases. In the first, the four distribution companies (Discoms), which are its wholly owned subsidiaries, will procure 500 MW of power each. For the discoms of West and south UP, the IPP will have to deliver power from April 1, 2010, while the scheduled date of delivery for the discoms of East and Central UP is April 1, 2011.

In the second phase, the discom of west UP will purchase 1,200 MW, while the three others will buy 6,000 MW each. The successful IPP will have to commence power supply to the four discoms from April 1, 2014.

The Corporation will buy power from the IPPs, on “Case I basis” in accordance with the guidelines for determination of tariff, issued by the Union Ministry of Energy in January

this year. Under Case I basis, the location, technology or fuel is not specified by the procurer or the Discom. Under Case II, the Discom will have to arrange for the project development, land acquisition, environmental clearance, water and fuel linkages followed by the award of the project to the private investor through the process of global competitive bidding.

“Two bids have been received for the first phase of procurement of power from IPPs. The bids are being evaluated and the process of selection of IPPs for both the phases will be completed by the year’s end”, said S K Agarwal, director finance of the UPPCL.

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