Central government directs utilities to procure power through reverse auction

The central government has directed power utilities to undertake power purchases through a reverse auction mechanism. The buyer would set the maximum price for the quantum of power to be purchased for time periods ranging from a month to 25 years. The bidding would entail multistage bidding including online requests for quotation, request for proposal and reverse e-auction. For the purpose of auction, MSTC Limited would set up a platform for short-term purchases by January 2016, and one for medium- and long-term purchases by March 2016