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PART ISection 1

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PUBLISHED BY AUTHORITY

la. 35]

ubZ fnYyh] cq/okj] iQjojh 12] 2014@ek?k 23] 1935

No. 35]

NEW DELHI, WEDNESDAY, FEBRUARY 12, 2014/MAGHA 23, 1935

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580 GI/2014

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THE GAZETTE OF INDIA : EXTRAORDINARY

[PART ISEC. 1]

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MINISTRY OF POWER
RESOLUTION
New Delhi, the 10th February, 2014
Guidelines for Procurement of Electricity for Medium Term from Power Stations set up on
Finance, Own and Operate (FOO) basis
No. 23/17/2013-R&R(Vol-II).Whereas the Central Government is engaged in creating an
enabling policy and regulatory environment for the orderly growth of generation of electricity in
accordance with the provisions of the Electricity Act, 2003 (the Act);
Whereas it is incumbent upon the Central Government, State Governments, Electricity Regulatory
Commissions and the distribution licensees to promote competition in the procurement of electricity
through competitive and transparent processes;
Whereas the Central Government has, after extensive consultations with various stakeholders and
experts, evolved a model contractual framework for procurement of electricity by the distribution
licensees from power producers who agree to construct and/or operate power generating stations set up
on Finance, Own and Operate (FOO) basis for medium term power.
Whereas, the Central Government has, vide its letter No. 23/17/2013 -R&R (Vol-II) dated 29th
January, 2014, issued the model documents comprising the Model Request for Qualification (the
MRFQ), the Model Request for Proposals (the MRFP) and the Model Agreement for Procurement
of Power (the MAPP) (collectively, the Model Bidding Documents) to be adopted by distribution
licensees for procurement of electricity from the aforesaid power producers through a process of open and
transparent competitive bidding based on offer of the lowest tariff from power generating stations
constructed and/or operated on FOO basis;
Now, therefore, in exercise of the powers conferred under section 63 of the Electricity Act, 2003,
the Central Government notifies these guidelines to be known as the Guidelines for Procurement of
Electricity for medium term from Power Stations set up on Finance, Own and Operate (FOO) basis (the
Guidelines). These Guidelines shall come into effect from the date hereof subject to the following
terms and conditions:
1.
The terms and conditions specified in the Model Bidding Documents referred to hereinabove
shall, by reference, form part of these Guidelines and shall be treated as such.

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2.
The application of these Guidelines shall be restricted to projects constructed and/or operated in
accordance with an Agreement for procurement of power for a period of between one and five years, with
a provision for extension of this period for the lower of 25% of the initial contract period and one year,
with mutual consent.
3.
The tariff determined through the bidding process based on these Guidelines comprising the
Model Bidding Documents shall be adopted by the Appropriate Commission in pursuance of the
provisions of section 63 of the Act.
4.
Any deviation from the Model Bidding Documents shall be made only with the prior approval of
the Central Government. Provided, however, that any project specific modifications expressly permitted
in the Model Bidding Documents shall not be construed as deviations from the Model Bidding
Documents.
5.
The Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by
Distribution Licensees issued on 19th January, 2005, as amended from time to time, including the
standard bidding documents for Case-1 and Case-2 projects are hereby repealed in so far as they relate to
procurement of electricity for medium term. Provided, however, that any agreements signed or actions
taken prior to the date hereof shall not be affected by such repeal of the said guidelines of 2005 and shall
continue to be governed by the guidelines repealed hereunder.
JYOTI ARORA, Jt. Secy.

Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.