Garhwal Post Bureau
Dehradun, 17 Sep: Principal Secretary (Energy) R Meenakshi Sundaram today issued a detailed clarification on the 1320 MW thermal power purchase agreement. He has countered allegations raised by the Opposition parties and has emphasised that the entire process has adhered to rules, competitive bidding and regulatory approval. He asserted that the arrangement is designed to secure Uttarakhand’s long-term electricity needs and is not intended to benefit any single company.
Sundaram explained that the bidding process was based on the Model Bidding Document issued by the Ministry of Power in 2019, which serves as a general framework but requires adaptation to the specific conditions of each project. He claimed that the suggestions and objections from the bidders were examined on the technical and practical grounds and that the proposed changes were placed before the Uttarakhand Electricity Regulatory Commission (UERC). After detailed deliberations, UERC approved the necessary modifications, ensuring transparency and regulatory oversight.
He clarified that five companies qualified at the Request for Quotation stage, and that the competition has continued into the Request for Proposal phase. The final selection will be made strictly on the basis of competitive tariff bids. The arrangement for 1320 MW base-load power has been proposed to meet the state’s growing demand over the next 25 years, with the first unit expected within 42 months and the second within 48 months.
Sundaram also reminded that the option of locating the plant anywhere in the country was included to allow the bidders to factor in coal availability, transport costs and other practical considerations. He stressed that there is no restriction on setting up the plant in Uttarakhand itself, provided competitive tariffs are offered. Transmission costs will be determined under the tariff conditions, and the actual financial impact on consumers will be assessed only on the basis of the final tariff, not assumptions about plant location.
Addressing concerns expressed in respect of the fixed charges, he observed that the limit has been raised from 70 to 75 per cent to allow flexibility in fuel cost components, but this does not automatically increase the consumer burden. The overall tariff, combining fixed and variable costs, will determine the final payment. He also clarified that the estimated Rs 1.60–1.66 lakh crore figure represents the projected cumulative payment over 25 years, not a lump sum, and will depend on the supply, plant availability and tariff outcomes.
Sundaram further stated that a joint venture between UJVNL and THDC was considered but could not be pursued due to THDC’s structural limitations as an NTPC subsidiary focuses primarily on hydropower and pumped storage. Consequently, competitive bidding was adopted as the most viable option. Sundaram reiterated that the process has involved technical scrutiny, competitive evaluation and independent regulatory approval at every stage, and the sole objective remains securing reliable and affordable electricity for Uttarakhand’s future.
