Queries & Responses ‐ Part II
S. No Queries
Response
1 What shall be the mode of communication to bidders for announcing Relevant Govt Notifications in these respects will be issued
the concessions approved by State Govt/ Central Govt?
2 Gas price is ex‐terminal price of e‐bid RLNG. While fluctuations in gas The Per Unit PSDF Support shall stand adjusted in accordance with the formulae set out in Clause 2.8 of the PSDF Support Agreement
price and forex shall be met from PSDF Support fund, what about transportation cost? Any increase in transportation cost should also be met from PSDF Support fund.
3 1) How would the PSDF Support be released?
PSDF support release mechanism shall be as per Clause 2.4.2.1 of the Tender Document. 2) Clause 2.4.2.1 of the Tender Document, "Each of the Discoms will in turn pay the gross value of the incremental Electricity produced from e‐bid RLNG (i.e. the amount including the support from PSDF) to the Trust and Retention Account of the Successful Bidder."
The gross value of e‐bid RLNG of the incremental energy to be released every fortnight to the Trust and Retention Account of the Bidders since RLNG fuel bill payments required to be effected to GAIL / designated fuel operator once in a fortnight.
4 Is diversion of gas permitted i.e. gas allocated to one plant may be used in other plant of the Successful Bidder?
Please see the response to query no. 3 in the 'Responses to Bidders queries ‐ Part 1' which has been uploaded on the MSTC's website.
5 As per the Tender Document, Stranded Gas Based Plants have been exempted from transmission charges and losses. However, such exemption has not been provided to Plants receiving domestic gas. This shall be as per Tender Document.
6 Is rostering permitted between multiple plants of different owners?
Please see the response to query no. 3 in the 'Responses to Bidders queries ‐ Part 1' which has been uploaded on the MSTC's website.
7 For the purpose of calculation of Required e‐bid RLNG, Allowable SHR This shall be as per the Tender Document.
on the basis of Normative SHR is being considered. This SHR corresponds to PLF level of 80‐85%. However, SHR at lower PLF i.e. 25‐
30% is higher and leads to consumption of higher e‐bid RLNG. Therefore, SHR corresponding to 25‐30% should be considered while calculating Required e‐bid RLNG.
8 If power plant is runing at higher SHR, the gas quantity required shall This shall be as per Tender Document. be higher than the Required e‐bid RLNG. The Bidder would not be able to generate the Total Incremental Electricity using the Allocated e‐bid RLNG in such a case. Therefore, Actual SHR should be considered while calculating the Required e‐bid RLNG.
9 Since Target Price is being revised in multiple rounds of same auction, This shall be as per the Tender Document.
it is difficult for the bidders to negotiate PPAs with the Discoms. It is requested that the Target Price be fixed for the auction.
10 The Relevant Period for the current auction of June 1, 2015‐
Yes, a Bidder may generate Total Incremental Electricity in any manner, but without exceeding the September 30, 2015. Can a bidder start the operations of power plant Target PLF during the Relevant Period subject to operational and technical constraints. However, change in date for generation will have to be suitably reflected in terms of supply period set out in the at a later date i.e. say July 1, 2015?
e‐bid RLNG Sales and Purchase Notice in the format set out in Annexure 5 to the e‐Bid RLNG Sale Agreement. 11 Would commissioning gas be supplied under the current scheme?
No
12 The delivered price of e‐bid RLNG as applicable to each bidder may be Delivered price of e‐bid RLNG as applicable to each Bidder shall be communicated to individual Bidders informed at the earliest so that the bidders may negotiate PPAs and before the start of e‐auction process.
take an informative decision regarding bidding.
13 Delivered price of e‐bid RLNG as applicable to each bidder shall be provided. Since delivered price is inclusive of transportation cost which would be different for different bidders, this will lead to disparity between Bidders.
Delivered price of e‐bid RLNG as applicable to each Bidder shall be communicated to individual Bidders before the start of e‐auction process.
14 1) Our understanding on PSDF support is as under:
Domestic Gas based plants:
Target Price: 4.19 ₹/unit. PSDF support: 1.26 ₹/unit
GAIL indicative price: 8 $/mmbtu Exchange Rate:62 ₹/$
Assuming Generator is successful in the bidding process with PSDF support 1.26 ₹/unit. Variable fuel cost of generation @ 8 $/mmbtu : ₹4.26/unit. PSDF support available : 1.26 ₹/unit
Generator is getting their fixed charges including ROE under PPA directly from GUVNL and hence no margin is required towards fixed charges.
Generator can sell the power to the discom at net price will be ₹3.00/unit i.e. PSDF support remains same as winning bid even if discom net price is lower than the target price.
Request to confirm this understanding. Same is true for stranded gas based plants.
1) Yes 2) Rs 0.94 per Unit
2) Say target net price is Rs. 5.50 per unit and bidder quote Rs. 0.94 per unit as the support from the PSDF fund. But the PPA is for Rs. 6.00 per unit with Discom under the scheme. What will be the per unit PSDF support? Will it be Rs. 0.94 per unit or Rs.0.50 per unit?
Please see the response in the 'Responses to Bidders queries ‐ Part 1' which has been uploaded on the 15 Annexure I
MSTC's website. PRAGATI POWER CORPORATION LIMITED
a) Pragati CCGT‐III 750 MW ‐ Stranded Gas Based Plant
b) Pragati CCGT‐III 750 MW ‐ Plants Receiving Domestic Gas
PRAGATI CCGT‐III capacity shown as 750 MW in Plants Receiving Domestic Gas, should be 1500 MW instead and should be deleted from Stranded Gas Based Plant.
If the two modules are dealt with separately, the one unit of each module will be operating on single boiler operation with more starts and stops severely effecting economic & optimal running to achieve target PLF. With entire station as one entity, we can run at times both units of one module, thereby resulting in more economic and optimal operation with fewer starts & stops to achieve target PLF. It will result in generation of same amount of electricity.
16 Request for extension of time for submission of queries:
This shall be as per Tender Document and any Corrigenda/Addenda issued in this regard.
The Tender Document read alongwith PSDF Support Agreement and eRSA forms a comprehensive document and requires detailed study. Further, the Tender Document requires stranded gas based power plants to provide various bank guarantees and open Trust Account all of which requires negotiations with lenders and lead banks. The last date of receiving queries from bidders is defined as 28.04.2015 which is too stringent and not possible to acheive looking at sheer volume of documents which require careful study. We request you to grant extension of one week's time to submit queries from Bidders
17 Clause 1.1.34 of the Tender Document “Per unit PSDF support” shall Please see the response to query no. 4 in the 'Responses to Bidders queries ‐ Part 1' which has been mean the support required (in Rs per unit) from PSDF fund by the uploaded on the MSTC's website.
bidder for each Unit of the incremental Electricity supplied to the Discom without exceeding the Target PLF for ensuring that the net purchase price for the Discoms is not more than the Target Price.
The PSDF support price to include auxiliary consumption units over and above the delivery units to the Discoms as per CERC norms of 2.5% (permitted auxiliary consumption)
18 Bid shall be on ex‐terminal price, however, in eRSA it is on delivered Please refer to Clause 3.3 (j) of the Tender Document. price plus taxes. Let GAIL provide the break‐up of cost between terminal price and delivery cost. Also the definition of Ex‐terminal price.
19 Contribution of stakeholder from bank/FI ‐ Banks should provide clear The Successful Bidder may approach the lead bank in the consortium or banks (in case of multiple cut reliefs/ contribution before submission of bid. The same be taken banking arrangements) who may consider their proposal in terms of RBI guidelines.
into account for bidding.
20 Clause 5.6.4 of the Tender Document
Rostering is permitted solely for generation up to Total Incremental Electricity. However, in next para more than Total Incremental Electricityis allowed at 100% PLF. Clarification is sought as this seems contradictory.
Please refer to the definitions of Rostering and Diversion in Corrigendum cum Addendum number 2. Further, as per Clause 5.6.4 of the Tender Document, Rostering of e‐bid RLNG shall be permitted solely for generation upto the Total Incremental Electricity by the Eligible Gas Based Plant receiving the e‐bid RLNG from such Rostering.
However, this will not restrict a Successful Bidder from generating electricity higher than the Total Incremental Electricity from the Allocated e‐bid RLNG but subject to a maximum of 100% loading factor (and not PLF). Please refer to Clause 1.1.34 of the Tender Document.
21 Clause 5.6.4 of the Tender Document
Support for higher than Total Incremental Electricity: PSDF support and Discoms shall pay for Total Incremental Electricity from allocated e‐bid RLNG by Rostering as this incremental generation would be on account of efficient operations. Annexure I of PSDF Support Agreement shall remain unchanged. Offtake of power under the PPA is a 22 Annexure I of PSDF Support Agreement
There should be provision for must take power in the format since its bilateral matter only between the Discom and the Successful Bidder.
Take or Pay contract, Discoms should buy this power from eRSA.
23 2.4.2.1(ii) As per Tender Document.
PSDF Support to the Eligible Gas Based Plants will be available only for the Total Incremental Electricity during the Relevant Period over and above the Base PLF. Thus, for example, if the PLF actually achieved during April‐January 2014‐15 is 20%, and if during the Relevant Period the PLF achieved is 25% from all sources including that from e‐bid RLNG, then PSDF Support will be made available for the electricity corresponding to 25‐20 = 5% PLF, but limited to the actual generation from e‐bid RLNG during the Relevant Period. It is expressly clarified that if Base PLF is not achieved at the Eligible Gas Based Plant during the Relevant Period, the Successful Bidder shall not be entitled to receive any PSDF Support. If the Eligible Gas Based Plant is not able to achieve the Base PLF on account of the SLDC not issuing dispatch instructions for the availability declared on the more expensive gas (on account of merit order considerations), will Eligible Gas Based Plant be entitled to receive PSDF Support? PPA is a matter between Successful Bidder and Discom and the present Scheme does not seek to alter 24 2.4.2.1(v) For the Eligible Gas Based Plants, the lead banker of the Successful Bidder / the same in any manner. EPMC will ensure that money, including payment under PPA and PSDF Support commensurate to the Final Total Incremental Electricity during the Relevant Period over and above the Base PLF, shall be utilised only for the purposes of payment of variable cost of generation. Surplus, if any, after the payment of variable cost of generation shall revert back to PSDF to the extent of the PSDF Support mentioned in the Final Financial Bid. Will the terms of the PPA remain unaltered as regards payment of fixed charges and incentives thereunder?
PPA is a matter between Successful Bidder and Discom and the present Scheme does not seek to alter 25 2.4.2.1(viii) The lead banker of the Successful Bidder will ensure that all receipts of money the same in any manner. would be utilized only for payments towards the variable cost of generation plus O&M expenses as per the CERC/concerned regulator guidelines in force and debt servicing after capping the fixed cost and ensure that no payments are made towards any return on equity to the sponsors of the Successful Bidder. The lead banker shall ensure that any payment received on account of sale of power pursuant to the Scheme shall first be appropriated towards the dues under the e‐
bid RLNG Sale Agreement and thereafter, balance if any, shall be paid towards O&M cost. We understand from Pre bid clarifications that the payment under PPA in this clause means only payment of variable charges to be made by DISCOM against the incremental generation from e‐RLNG under this Scheme. And all other terms of existing PPA would remain unaltered as regard to payment of fixed charges and incentives thereunder.
As per Tender Document.
26 3.4.5 The electronic platform of MSTC will automatically calculate and display the quantity of the Required e‐Bid RLNG to generate the quoted number of the Total Incremental Electricity based on the Allowable SHR value provided by the Central Electricity Authority. ▪ The bid is based on SHR, the dynamics of plant operations can result in variations of SHR, hence there would be difference in units actual generated and quoted how would the same be mitigated / treated
27 3.4.5 The Please see the response to query no. 4 in the 'Responses to Bidders queries ‐ Part 1' which has been electronic platform of MSTC will automatically calculate and display uploaded on the MSTC's website.
the quantity of the Required e‐Bid RLNG to generate the quoted number of the Total Incremental Electricity based on the Allowable SHR value provided by the Central Electricity Authority. What is the methodology used to calculate the Required e‐bid RLNG since as per the documents the PLF is defined as Gross Generation whereas Incremental Electricity is defined as net delivered to the offtaker (after accounting for auxiliary consumption).
As per Tender Document
28 5.6.6 As per Office Memo annexure V clause (n), diversion of gas among successful bidders from the same Group is allowed. The same should be reflected in the tender document released.
29 6.1.5, 6.1.6 and 6.1.6 (d) Bid Security Bid As per Tender Document
security forfeiture should not take place in case the withdrawal is due to the Successful Bidder’s failure to sign a PPA within the agreed timelines. If such delay is not due to the bidder then the occurrence of these events should not lead to forfeiture of bid guarantee.
30 2.4.1.1 (c), (d), (e), (f) & (k) Details of the scheme Authority to confirm the timeline by which the same would be released.
As per Tender Document (Clause 3.12)
31 2.4.2.1 (v) Does this PPA is a matter between Successful Bidder and Discom and the present Scheme does not seek to alter imply that the Discom payment is linked to the payment of PSDF? As the same in any manner. per the pre‐bid discussions, we understand that the discom would release payment of tariff immediately and the PSDF amount when received from Government agency. 32 2.4.2.1 (vi) PSDF Support money would As per Tender Document
be utilized only for payments towards the variable cost of generation… Authority to clarify whether take or pay and gas swapping charges would qualify for variable cost of generation. who would certify the O& M expenditure. Payment periodicity and mechanism for sale is not consistent with the proposed periodicity under the gas sale agreement.
33 As per the definition of Target Price, it has been mentioned that it is As per Tender Document, the net purchase price to the Discoms should not exceed Target Price. maximum net purchase for the DISCOM. Based on the same, we Please refer to clause 8 of Annexure IV of Tender Document along with clause 2.6 of the PSDF Support understand that the different price (other than Target Price) may be Agreement. offered to DISCOM. Please clarify the same
34 Clause 3.4 As per the tender document, allowable SHR is quoted in Please see the response to query no. 4 in the 'Responses to Bidders queries ‐ Part 1' which has been uploaded on the MSTC's website.
GHV on Gross basis. However, we understand from the pre‐bid conference that Incremental Generation is to be quoted on net generation basis (after deducting auxiliary consumption). We request you to kindly clarify on the same.
35 Clause 3.12 of Tender Document ‐ It is requested that Upward Revision of PSDF Support level may not be limited to ceiling of PSDF Support Unit Price.
No such Clause
36 We request you to please provide the clarity if there is a need to Only one contact person is allowed per Bidder who will be authorized by the Bidder to bid online with change the authorisation of any person nominated for the bidding his / her DSC. In case of exigency, contact person can be changed on receipt of request from the process including Contact Person, PoA and Affidavit etc. How would it competent authority of the Bidder. Ideally, the PoA should be in favour of the contact person. be done? Can more than one person be nominated for same to cover exigencies?
37 We request you to confirm that all envisaged and documented As per Tender Document.
exemptions (e.g. custom duty waiver, VAT waiver) are to be made available. Nodal Authority may publish status on same few days prior to signing of definitive agreement (i.e. 10th May)
38 Please clarify whether the amalgamation or merger of 100% subsidiary company with the Parent Company would be considered as change in control
Yes 39 We request you to consider the clubbing of gas across plants of same Please refer to Tender Document and Corrigenda.
ownership may be allowed to enhance generation from more efficient plant.
40 PSDF Agreeement Clause 2.8: We request you to please provide the As per the Tender Document
information on margin of Exchange rate and Price variation built into the PSDF Support level. The same may be provided through formal corrigendum
It is requested that Revised Per Unit PSDF price may be applicable for all Incremental Electricity Generated from the Revised e‐bid RLNG price (irrespective of Incremental Electricity Generated or to be Generated). 41 PSDF Agreement Clause 5.2.1: It is requested that the appropriation As per the PSDF Support Agreement
event related to short supply of Incremental Electricity Generated may also account for the factors beyond the generators i.e. short supply of e‐bid RLNG, non offtake by DISCOM and transmission constraint etc.
42 PSDF Agreement Clause 11.2: We submit to amend the termination As per the PSDF Support Agreement
condition related to the failure to supply Incremental Electricity. “(ii) failure to supply at least 70% of the Incremental Electricity generated at the Specified End Use Plant to the Discom 43 PSDF Agreement: Clause 3.2 of Annexure 1: We suggest a change in As per the PSDF Support Agreement
the Clause 3(ii). “(ii) the Power Purchase Agreement will be entered into prior to the start of power supply”
44 Is Bidder from power surplus state like Gujarat is allowed to sell power up to target PLF to other DISCOMs, with whom Bidder does not having any long term PPA?
Offtake of power under the PPA is a bilateral matter only between the Discom and the Successful Bidder.
45 Is permission from DISCOM, with whom Bidder has long term PPA but Bidder may take appropriate view as per law.
not interested in buying such power, is required for participation in this scheme and sale to other DISCOMs?
46 Is Bidder allowed to run his plant above target PLF during part of the Yes, in accordance with Clause 5.6.3 and 5.6.4 of the Tender Document. Also please refer to term of Tender and shutdown during other part to achieve economic Corrigenda along with these clauses.
heat rate?
47 Is Bidder allowed to run his plant based on unit size instead of target Yes, in accordance with Clause 5.6.3 and 5.6.4 of the Tender Document. Also please refer to PLF but restricting overall generation up to Target PLF?
Corrigenda along with these clauses.
48 Is DISCOM allowed to schedule power based on its real time requirement?
PPA is a matter between the Successful Bidder and Discom and the present Scheme does not seek to alter the same in any manner. In such an event, the Bid Security will be appropriated as per the provisions of Clause 3.4.6 (c) (ii) of 49 In the event a power plant does not find any buyer even after accounting all incentives and foregoing return on equity, what should the Tender Document. Therefore, the Successful Bidders need to factor this while participating in the be remedy for such plant?
tender process.
50 Is Target PLF calculated on annual basis?
Target PLF shall be calculated for the Relevant Period
51 Is Tariff determined under this scheme is treated as Tariff discovered Bidder may take appropriate view as per law.
under Sec. 63 of EA?
As per the Tender Document
52 Tender Document Annex III, 3.8 (d)
L1 & H1 bid for PSDF Support will be displayed on screen to bidders. L1 and H1 bids mean the highest and the lowest bid of Per Unit PSDF Support for which some provisional allotment of e‐Bid RLNG has been made at that point of time. A Bidder has to quote at least below the H1 bid to secure consideration of e‐bid RLNG allotment.Please clarify whether the bidder has to quote atleast below H1 or L1 bid to secure RLNG for allotment. We presume L1 as lowest and H1 as highestbids.We would request MoP to consider revising the clause as follows
L1 & H1 bid for PSDF Support will be displayed on screen to bidders. L1 and H1 bids mean the highest and the lowest bid of Per Unit PSDF Support for which some provisional allotment of e‐Bid RLNG has been made at that point of time. A Bidder has to quote at least below the highest bid to secure consideration of e‐bid RLNG allotment.
In case if there are any non‐serious bidders then it will restrict other bidders from competiting or submitting a revised bid lower than H1 that can be accepted by the bidding agency.
53 Tender Document 3.3 (i) Public Notification of List of the Technically As per the Tender Document
Qualified Bidders. After conclusion of the Financial Bid, the Nodal Authority may publish the entire list of the Bidders who were declared as Technically Qualified Bidders.
54 Tender Document 3.5 (i) (ii) Preferred Bidder not to become Successful Bidder in certain cases:Agency can declare preferred bidder as unsucessful. In such cases we would request nodal agency not to forfeit bid security of unsuccessful bidder.
As per the Tender Document
55 Tender Document 3.13.1
Schedule of Tender process We would request MoP to consider extending the timeline by 20 days from issuance of LoA to succesful bidder for executing the rest of the agreements (PSDF,e‐bid RLNG). As per the Tender Document
As per the PSDF Support Agreement
56 PSDF Agreement clause 2.3 c The timing of the release of the PSDF Support shall be subject to the availability of funds in the Ministry of Power's relevant budget head Please confirm the timing of PSDF fund.Any delay in payment to RLNG supplier attracts penal interest. Therefore, in case there is any delay in the payment of receivables from PSDF by the agency then we would request the agency, the receivables shall be paid inclusive of interest for delayed payment.
As per the Tender Document.
57 PSDF Agreement Clause2.8.3 & 2.8.4. In case of any fluctuation in RLNG price and currency the Per unit price (PSDF support) shall be increased but within total fund value.We would request the agency to increase the PSDF support accoordingly so that the bidders would still be able to supply the incremental units as per the agreed in the contract.
As per the revised schedule of the tender process on the MSTC Website. 58 PSDF Agreement Clause 5.2.1 (b)
Failure of succesful bidder to procure consent from Discom on confirmations by succesful bidder would be liable to forfeiting of entire PDSF security.
Succesful bidder shall be signing the PSDF agreement only in case bidder is able to procure consent from Discom as per Annexure I of PSDF agreement. In case succesful bidder is unable to procure the consent from Discom as per format prescribed in Annexure I, bidder shall not execute any agrements.
Hence the clause 5.2.1(b) is not applicable and shall be excluded from the agreement.
59 Say target net price is Rs. 5.50 per unit and bidder quote Rs. 0.94 per Rs. 0.94 per unit. Also, see query no. 14 and the response in that regard.
unit as the support from the PSDF fund. But the PPA is for Rs. 6.00 per unit with Discom under the scheme. What will be the per unit PSDF support? Will it be Rs. 0.94 per unit or Rs.0.50 per unit?
As per Tender Document
60 In case host state do not extend the concessions /waivers of VAT, Entry tax, STU charges etc , the bidder plant will not be eligible for support. These waivers should be available before signing of PSDF support agreement. In case waivers are not given by the host state the successful bidder should be allowed to withdraw bid without any penalty/LD. Clause 3.12 of tender need to include sub clause (g), (i), (j) of clause 2.4.1.
Under process.
61 Waiver for exemption of transmission charges and losses for Stranded gas based plants has been obtained or it is yet to be obtained?
62 1) What would happen if the State / Central Govt doesn’t approve the As per Tender Document
haircuts envisaged in the scheme, after the eRLNG has been allocated?
2) In case host state do not extend the concessions /waivers of VAT, Entry tax, STU charges etc , the bidder plant will not be eligible for support. These waivers should be available before signing of PSDF support agreement. In case waivers are not given by the host state the successful bidder should be allowed to withdraw bid without any penalty/LD. Clause 3.12 of tender need to include sub clause (g), (i), (j) of clause 2.4.1.
As per Tender Document
63 Clause 2.4.1 (f) and 3.12 of the Tender Document
Guidelines of swapping exist, whereas clarification on co‐mingling is awaited. Bidder shall have right to withdraw if co‐mingling is not allowed under 3.12.
The bidder shall quote on co‐mingling basis. If by execution date the co‐mingling is not clarified, then all quotation will be misrepresentation
64 Sr. No. 12 of Annexure I: DGEN Mega CCPP is located in Gujarat State. As per Corrigendum cum Addendum No. 1
65 Annexure I: It is observed that there are certain plants which are yet No Change. to be commissioned or are on co‐generation basis. We would like to request that a separate list of (a) commissioned (b) yet to be commissioned (c) co‐generation plants to be published 66 Annexure X TRA Mechanism: It is to be clarified that water charges are to be considered as per the CERC norms (to be paid in actual basis)
67 Tender Document Clause 1.1.50 “Target Price” Is the target price subject to revision based on allowable SHR of the eligible gas based plants. The variable cost of RLNG for generation of power varies based on SHR of each plant, as it is ranging from 1844 kcal to 2688 kcal of eligible gas based plants as per annexure‐I Eligible gas based plants.
The maximum net purchase price for the Discoms to be determined / adjusted based on the allowable SHR per kWh as against uniform target price of Rs.5.50 per kWh.
Suggested Definition “Target Price” shall be R.5.50 per Unit or Rs.5.30, Rs.5.10, Rs.4.90 and Rs.4.70 per a Unit for allowable SHR of 1844 kcal / kWh with proportionate adjustment for higher SHR plants as may be applicable to every iteration of the Financial Bid, which is the maximum net purchase price for the Discoms.
As per Tender Document
As per Tender Document
Kindly refer to Corrigendum cum Addendum No. 2 to the Tender Document.
68 Clause 2.4.2.1 (viii) in Tender Doc:
Proposed Modified Clause:
The lead banker of the Successful Bidder will ensure that all receipts of money would be utilized only for payments towards the variable cost of generation. The lead banker shall ensure that any payment received on account of sale of power pursuant to the Scheme shall first be appropriated towards statutory dues and dues under the e‐
bid RLNG Sales Agreement. Kindly refer to Corrigendum cum Addendum No. 2 to the Tender Document.
69 Clause 2.4.2.1 (viii) in Tender Doc:
The lead banker of the Successful Bidder will ensure that all receipts of money would be utilized only for payments towards the variable cost of generation plus O&M expenses as per the CERC/concerned regulator guidelines in force and debt servicing after capping the fixed cost and ensure that no payments are made towards any return on equity to the sponsors of the Successful Bidder. The lead banker shall ensure that any payment received on account of sale of power pursuant to the Scheme shall first be appropriated towards the dues under the e‐bid RLNG Sale Agreement and thereafter, balance if any, shall be paid towards O&M cost. PPS#3 is covered under PPA and CERC regulations. Our Debtor’s are not facing debt servicing issue due to absence of buyers. The scheme calls for target variable cost in this case and ,therefore, should not have reference to Fixed cost aspect.
70 For Plants receving domestic gas, the base PLF corresponds to April‐
January 2015. Can e‐bid RLNG be used to achieve Base PLF as well?
No. 71 In reference to Clause 9 (a) (v) of the Office Memorandum, it has This shall be as per Tender Document. been obeserved that the daily allocation of domestic gas to PPS#3 Bawana is highly fluctuating one. It is seen that when pwer demand picks up, it drops and in lean period, it peaks up. It can happen that PLF may be higher in one cycle, say June‐Sept, with higher daily gas allocation, e‐bid RLNG and higher scheduling, but in next cycle, Oct‐
April, power demand may drop, and overall PLF may be low, even though we have used e‐bid RLNG in the first cycle. So, for PSDF Support, PLF comparison should be restricted for the period for which e‐bid RLNG is requisitioned. As per Tender Document
72 In reference to Clause (h) and (o) of Annexure V of the Office Memorandum, it is observed that the clause doesn't speak of plants getting domestic gas. As already clarified above, daily allocation of domestic gas to PPS#3, Bawana is highly fluctuating one. Auctioning of e‐bid RLNG is for a longer period (5 monsoon months or 7 non monsoon months). So it may happen that if daily based domestic gas allocation is higher and with e‐bid RLNG, the plant can achieve higher PLF than Target PLF. PSDF Support should be allowed in such cases. 73 In reference to the clauses 9 (b) & 9 (c) of the Office Memorandum, it Release of PSDF Support shall be as per Clause 2.3 of the PSDF Support Agreement.
is seen that there is no timeline defined for release of PSDF Support. Normally, gas billing is on fortnighly basis and energy billing on monthly basis. Discom should pay to power producer on monthly basis. Reconciliation can be done after release of PSDF support. 74 In reference to Clause 9 (d) of the Office Memorandum, it is requested that the clause shouldn't be applicable for plants having domestic gas allocations or even plants not seeking restructuring of loans. As per Tender Document
75 1) What would happen if the State / Central Govt doesn’t approve the As per Tender Document
haicuts envisaged in the scheme, after the eRLNG has been allocated?
2) In case host state do not extend the concessions /waivers of VAT, Entry tax, STU charges etc , the bidder plant will not be eligible for support. These waivers should be available before signing of PSDF support agreement. In case waivers are not given by the host state the successful bidder should be allowed to withdraw bid without any penalty/LD. Clause 3.12 of tender need to include sub clause (g), (i), (j) of clause 2.4.1.
76 Sr. No. 23 of Annexure I: It is requested that the base PLF for As per Tender Document
Domestic Gas Receiving Power Plant may be calculated based on domestic gas supply only i.e. Term RLNG supply is to be excluded. Out of SUGEN’s PLF of 25.6%, ~7.6% was on domestic fuel and ~18% was on Term LNG.
Please amend the Base PLF of SUGEN Mega Power based on domestic gas consumption. LNG is more than twice expensive as domestic gas. It may be noted that the most of domestic gas was received by central and state sector power plants and very negligible gas was available to most of the private sector power plant during the period Apr 14 to Jan 15. 77 Does the defined term Bidder mean each individual plant or a company?
The term Bidder has been defined in the Tender Document. It may, however, be clarified that for the purpose of the Clause 3 as well as Annexure III, the Term Bidder has been used to describe each of the Eligible Gas Based Plants with a unique registration number.
78 In the eRSA, under the Take or Pay Agreement, if the plant is shut Flexibility in off take may be considered subject to Operational Flexibility of the e‐bid RLNG Operator. down for 2 days, the bidder should have the flexibility to take more However, the Buyer is liable to off take entire e‐bid RLNG Contracted Quantity during the Relevant Period
gas on other days.
79 For plants located in Gujarat, would GAIL be the supplier and GSCPL For plants in Gujarat the delivery shall be made available at the relevant LNG regasification terminal
be the transporter of e‐bid RLNG?
i.e. Hazira/ Dahej and Successful Bidder shall have the option of availing transportation from GSPL or
GAIL.
80 As per Clause 6.3.1 of eRSA, the Article shall not apply in respect of The rostering is subject to operational and technical constraints and accordingly the same is excluded.
supply of e‐Bid RLNG in excess of DCQ under any rostering
mechanism requested by the Buyer. The same should be made
applicable.
81 Clause 6.2.1 of the eRSA: Under the Take or Pay Arrangement, if the
quantity of e‐bid RLNG taken by the Successful Bidder is less than the
Allocated e‐bid RLNG during the Relevant Period, then GAIL may sell
such unutilised gas quantity to others and the Successful Bidder
should pay only the difference in such sale price i.e. Take or Pay
Payment = Deficient Quantity * (WtAvg Price of e‐bid RLNG for the
Supply Period – Sale Price of Deficient Quantity to Other Parties)
Provision for charging all or part of Buyer’s Take or Pay Payments is being incorporated in the eRSA as
per the following: 6.2.3 The Seller may at its sole discretion require the Buyer to pay to the Seller for
all or part of the Buyer’s ToP Payment. Any such discretion that the Seller exercises shall be
communicated by the Seller to the Buyer in writing. Unless, any waiver in terms of Pay ToP Payment is
communicated to the Buyer by the Seller in written, the ToP Payment of the Buyer would stand as it is
incurred and shall be paid by the Buyer to the Seller as per Clause 6.2.1.
6.2.4 For avoidance of doubt, it is clarified that the Article 6.2.3 shall be at the sole discretion and
judgment of the Seller and shall not be construed as setting a precedent or an implied consent by the
Seller to exercise such option in future in relation to any ToP Payment. Further, rights exercised by the
Seller under Article 6.2.3 shall not act as a waiver of other rights of the Seller against the Buyer for any
failure to off take e‐Bid RLNG under this Agreement.
82 As per Clause 9.1 of the eRSA, the billing of e‐bid RLNG to the Existing provision of e‐RSA stands
Sucessful Bidder shall be on a fortnightly basis. Whereas as per Clause
9.5 of the eRSA, the Successful is required to provide LC
corresponding to RLNG supply fo three fortnights. Since the gross
payment by the Discoms shall be release in TRA account, the
requirement of such LC may be reduced to one fortnight.
83 While the Gross Heating Value of e‐bid RLNG is specified as 9800 The figure of 8,500 Kcal/scm refers to the minimum GHV of gas. The eRSA will specify the contracted kcal/scm in Clause 1.1.6 of the Tender Document, it is specified as quantity of e‐bid RLNG in terms of Gross MMBTUsrequired during the Relevant Period.
8500 kcal/scm in Annexure 1 of the eRSA. Would the quantity of gas suplied be adjusted as per 9800 kcal/scm in case the gross heating value is less than 9800 kcal/scm
84 Clause 6.1.3/ 6.3 of the eRSA: ToP is for 100% and shortfall quantity at 80%. It should be equitable on either side, for unforeseen conditions and back down from Discoms
Existing provisionof e‐RSA stands
85 Clause 6.1.3 of the eRSA: If there is deficiency in off‐take on any day, Unauthorized overrun shall not be allowed.However, subject to system capacities, higher nominations unauthorized overrun up to 120% should be allowed, without any may be mutually scheduled subject to prior consent of the Seller/ Gas Transporter as per eRSA penal charges on RE basiss. provisions.
86 Clause 9.5 ERSA & Tender Document Annexure X: Please clarify the Modification shall be made so that L/C will remain valid for a duration of Relevant Period plus two following one year tenor of LC as given in clause 16 of LC format months.
whereas the tenor mentioned in clause 9.5 (i) of eRSA is for the
supply period.
87 ERSA Clause 6.2 Take or Pay: It is requested to allow for reduced level Existing provision of e‐RSA stands
of TOP level compared to 100%.
88 ERSA Clause 6.3 It is requested that LD provision may be made Existing provision of e‐RSA stands
reciprocal to the ToP provision by increasing trigger level to 100% and
value to actual price of gas instead of 5%. 89 ERSA Clause 6.6 It is requested that Overdrawl charges arrangement
be removed from eRSA as plant require to vary offtake based on
Generation requirement/ Rostering Arrangement/ Clubbing.
The constraint would limit rostering arrangement. Further, the
offtake at entry point may not be regulated by the bidder. Based on
the same, the overdrawl may be calculated for the period rather than
day to day basis / fortnight basis. Overdrawl charges are provided to ensure system discipline so as not to affect the off take of other
customers. Variation in off take may be considered subject to Operational Flexibility of the e‐bid RLNG
Operator. Further, any rostering is subject to operational and technical constraints.
Article 6.5 provides for acceptance of higher Nominations subject to Operational Flexibility.
Any other operational issues amongst the Successful Bidder, e‐bid RLNG Operator, other gas
Transporters and LNG Terminal operator will be resolved by the e‐bid RLNG Operator on a reasonable
endeavor basis.
90 ERSA Clause 13 Force Majeure provision for Buyer should be Existing provision of e‐RSA stands
reciprocal to the Seller. (e.g. Gas Transporter’s Facilities, Power
Evacuation Network to be covered in Buyer’s Facilities).
91 ERSA Annexure ‐1: It is requested that Specification of Gas may be Existing provision of e‐RSA stands
reviewed considering standard RLNG specification and the same
should be accepted by the Transporter for off‐take.
92 ERSA Annexure ‐ 5: We would like to clarify that Successful bidder may transport gas using grid of transporter other than GAIL i.e. GSPL’s network or dedicated transmission line to terminal. In such case, no transportation charges should be payable to GAIL in this regard
Transportation charges will be payable to GAIL only if any section of GAIL’s pipeline network is used.
93 We also like to suggest for executing the Supply Notice under eRSA Existing provision of e‐RSA stands
on month to month basis rather than for the complete period. The same may be given 15 days prior to start of a particular month for that month. In any case, there is a penalty under PSDF agreement for generation less than 70% of Target PLF.
94 It is requested that the procedural aspects for availing custom duty Procedural aspects for availing custom duty benefits will be as per the relevant notification to be benefits i.e. responsibilities of each Part (GAIL and the Buyer) to be issued by the Department of Revenue
documented as per the eRSA.
95 Are take‐or‐pay charges payable under eRSA to GAIL refundable by No.
Purchaser/DISCOM particularly when gas could not be used due to
lower offtake by DISCOM?
96 Is services of Gas transporter other than GAIL under preview of this Refer to clause no. 5 (v)of O.M. dated 27.03.2015.
scheme? 97 Clause 3.3(j) Tender Document: Notification of certain aspects of the The details will be specified through a separate communication to the individual plants.
supply of the e‐bid RLNG Prior to the commencement of the
Financial Bid, the e‐Bid RLNG shall communicate to the Bidders the
following: (i) build‐up of the price of the e‐bid RLNG up to the delivery
point; (ii) maximum flow of the e‐bid RLNG possible at the delivery
point; and (iii) location of the delivery point. 98 Aspects of Delivery Point to be clarified, how would it impact the Scheme envisages reduction in pipeline tariff by 50% on e‐bid RLNG.
transportation cost subsidy in case of more than one transporter