Power projects can soon opt for tariff-based bids

New power projects will soon have the option of bidding on the basis of final tariffs, which will be adopted by state regulators, instead of going by the regulated cost-plus two part tariff formula. The power ministry will come out with bid guidelines and model bid documents for state governments by March 31. According to the new tariff policy, based on the recommendations of the national task force on power which will be announced shortly, power would be procured through competitive bidding. The task force has laid down certain principles based upon which the bids could be invited — tariff-based bids could either be invited for the entire project capacity (energy charges in such c.....