Sr. GMR Chhattisgarh Energy Limited 1 RfS - Bid Informati on Sheet 2 RfS - 1.2.2 Ceiling tariff of Rs. 2.82/kWh 1.2.2: The Gross Station Heat Rate (SHR) quoted by Bidder has to be less than or equal to presently applicable CERC norm for equivalent unit size. Rationale for keeping the ceiling tariff at Rs. 2.82/kWh In the event of back down by GUVNL, the actual gross SHR and actual Aux consumption shall be adjusted based on the actual operating load of the unit. The same to be used for the coal consumption purpose Rationale is the no. 1 (ii) of General Principles of MoP Guidelines issued on 20.02.2017 and in case of GUVNL it is Rs. 2.82 / kwh. The SHR related provision is as per the provisions of the Guideline issued by the Ministry of Power in the matter of flexibility in utilization of domestic coal and other measures for reducing the cost of power generation reg. dated 20 th February, 2017. The RFP also has a provision wherein it is specified that GUVNL shall ensure that actual schedule does not fall below an average 80% of the contracted power on monthly basis and not technical minimum as specified by CERC for each time block. Further, there is also a provision for proving compensation by GUVNL at 10% of the Quoted Tariff per kwh for the quantum of shortfall below 80% on monthly basis. The above provisions have been specified to protect the bidder for any variation in actual loading during operations and accordingly, no Page 1
3 RfS - 3.3.1 (v) 4 RfS 5.1.1 3.3.1(v): For technically eligible.... to Traffic Transportation Directorate of Railway Board (Ministry of Railways) by GUVNL. Based on the operational considerations, Ministry of Railways would convey their consent or otherwise within 7 days of the receipt of the reference. The Power station of the Bidder where the transfer of coal is not feasible as conveyed by the Ministry of Railway, would not eligible to participate in Financial Bid. 5.1.1: After E-Reverse Auction process, Bidders shall. 2 nd Selected Bidder at the tariff quoted by them and so on. In case of a tie at any stage, the successful bidder shall be selected through draw of lots amongst the tied bidders. 1. Kindly clarify whether the coal movement upto the plant is required by Railway mode only. 2. Kindly clarify whether coal transportation by road is allowed or not As we understand from the RFP, in the event of tie at any stage, the selection of bidder shall be done based on the highest capacity offered. Request you to kindly clarify the same. change is proposed in the existing clause. As per clause 1 (iv), of the methodology outline by MOP dated20.2.2017, the IPP where transfer of coal is not feasible by Railways would not be eligible to participate in RFP stage. Accordingly, primary mode of transport has to be railway upto railway siding nearest to the power plant. Seller can use other mode of transport from nearest railway siding to power plant. Bidder is required to mention nearest railway siding in the technical bid. The clause 5.1.1 to be read as: 5.1.1 After E-Reverse Auction process, Bidders shall. 2 nd Selected Bidder at the tariff quoted by them and so on. In the event, if two or more Bidders quote the same rate of Tariff during IPO and e-reverse Auction stage, the time of submission of bid will be the deciding factor for their ranking i.e the bidder who submits the tariff first will be selected first. 5 RfS We certify that in terms of the Kindly clarify what is meant by the The text in format 1 of the RFP document shall Page 2
Sr. Format 1 6 PPA - 3 (A) Bidding Document, our Technical Capacity is equivalent to MW 1.1.2 of RFP: Gujarat Urja Vikas Nigam Ltd... assigned as per the re-organization scheme. In line with above mentioned Case-4 envisaged for allowing flexibility of utilization of coal, GUVNL has decided to procure 1000 MW electricity from operational coal based power generating stations with generating units having minimum installed capacity of 200 MW and for a period from 1st October, 2017 to 30th June, 2018 (the "Project"). Technical Capacity of a power station As per the RFP, requisitioned quantum is 1000 MW whereas in the PPA, it is 500 MW. Request to kindly specify the correct quantum in PPA. be modified as given below: 3. We certify that in terms of the Bidding Document, our available Operating Capacity is equivalent to MW (MW in words). The total requisitioned quantum is 1000 MW. The clause 3(A) of the PPA to be read as given below: WHEREAS: (A) GUVNL has resolved to procure electricity from operational coal based power generating stations for a cumulative contracted capacity of 1000 MW in accordance with the terms and conditions set forth in the Power Purchase Agreement (PPA) to be entered into between the parties. 3(A) of the PPA: GUVNL has resolved to procure electricity from operational coal based power generating stations for a cumulative contracted capacity of 500 MW in accordance with the terms and conditions set forth in the Power Page 3
7 PPA - 3.1.4 & 5.4.3 Purchase Agreement (PPA) to be entered into between the parties. 3.1.4: Making regular advance paymen t to the Coal Company (SECL). Further the difference between the advance amount paid and the bill raised by Coal India Ltd or its subsidiaries, except on account of revision in the notified price, shall be paid by the Seller to GSECL within 7 days from the date on which such claim is raised by GSECL. No 5.4.3: In addition to above, in case the amount paid by the such difference. Seller shall have to make the payment against the bill within 10 days from the receipt of bill or in the subsequent upfront payment to be made to GSECL, whichever is earlier. Kindly clarify whether payment of differential amount is required to be made within 7 days or 10 days Payment of differential amount is required to be made within 10 days as stated in 5.4.3 The clause 3.1.4 to be read as: 3.1.4 Making regular advance upfront payment to the GSECL against the estimated quantum of coal to be transferred, as communicated by the GSECL to the Seller. The payment shall be made considering the grade-wise rate of coal specified in clause 3.3.4 (Table 1). GSECL shall then make payment to the Coal Company (SECL). Further the difference between the advance amount paid and the bill raised by Coal India Ltd or its subsidiaries, except on account of revision in the notified price, shall be paid by the Seller to GSECL within 10 days from the date on which such claim is raised by GSECL. 8 PPA - 3.1.9: Making regular Any increase/ decrease in railway freight The present agreement is a short term Page 4
Sr. 3.1.9 payments to the transporter (Railways / Shipping / Road) including demurrages, etc. for transportation of coal from Mine to Seller generating station. with applicable taxes and duties shall be suitably adjusted in the quoted tariff agreement and the bidder has to envisage and factor in any increase /decrease in railway freight with applicable taxes and duties during the contract tenure in his quoted tariff, as per clause no.8 (1) (x), of MoP Guidelines dated 20.02.2017. No change is required. 9 PPA - 3.1.5 Making payments towards all applicable charges / fees/ etc. including but not limited to the Inter-state / Intra-state open access charges, transmission charges and losses along with Point of Connection (POC) injection charges, RLDC Operating charges, POC drawal charges and losses, RLDC application fees up to Delivery Point Any increase in the POC charges/losses should be pass through. The present agreement is a short term agreement and the bidder has to envisage and factor in any increase /decrease in POC charges/ losses during the contract tenure in his quoted tariff, as per clause no.8 (1) (x), of MoP Guidelines dated 20.02.2017. No change is required. 10 PPA 3.3.1 & 7.1.3 3.3.1: Arrangement for..is given in clause 3.3.4 below. The actual quantum of coal being made available will depend on the following factors (i) Contracted Capacity (MW); (ii) Gross Station For the purpose of evaluating bid the SHR quoted by Bidder or as specified by CERC whichever is lower shall be considered. We request that for all other purposes like consumption of coal, Reconciliation, etc. actual SHR shall be considered. The SHR related provision is as per the provisions of the Guideline issued by the Ministry of Power in the matter of flexibility in utilization of domestic coal and other measures for reducing the cost of power generation reg. dated 20 th February, 2017. No change is required. Page 5
Heat Rate Quoted by bidder (kcal/kwh) or as specified by CERC for equivalent unit capacity, whichever is lower; (iii) GCV of Coal (kcal/kg) depending on the actual grade of coal. Normative Transit losses as specified in the prevailing CERC Regulations shall be considered for the purpose of computation of quantity of coal. 7.1.3: Gross Station Heat Rate (kcal/kwh) shall be used for coal quantity calculation. The Seller shall indicate the unit size and the Gross Station Heat Rate from which they propose to supply power. The Gross Station Heat Rate to be considered for coal quantity calculations shall be the Gross Station Heat Rate specified by the Seller or as specified by CERC for equivalent unit capacity whichever is lower. Normative Transit losses as specified in the prevailing CERC Regulations shall be considered for the purpose of Page 6
11 PPA - 4.1.1 12 PPA - 4.1.2 computation of quantity of coal. 4.1.1: Seller shall comply with the provisions of the applicable Law regarding Availability including, in particular, to the provisions of the ABT/Grid Code / any other applicable Codes and Regulations from time to time relating to declaration of Availability and the matters incidental thereto. Seller shall ensure that 100% contracted capacity is made available to GUVNL. 4.1.2: Any shortfall in availability below 100% contracted capacity on account of reasons other than force majeure conditions or reasons specifically identified in the Agreement as those not under the reasonable control of the Seller shall be considered as a Sellers event of default and shall be dealt with in accordance with the provisions of clause 9.1.1 of the Agreement. Request to kindly consider the availability as 85% of the contracted capacity. Any reduction in availability due to technical constraints shall not be treated as seller event of default. Request to kindly confirm the same. The clause 4.1.1 to be read as: 4.1.1 Seller shall comply with the provisions of the applicable Law regarding Availability including, in particular, to the provisions of the ABT/Grid Code / any other applicable Codes and Regulations from time to time relating to declaration of Availability and the matters incidental thereto. Seller shall ensure that at least 80% contracted capacity is made available to GUVNL on monthly basis. The clause 4.1.2 to be read as: 4.1.2 Any shortfall in availability below 80% contracted capacity on monthly basis on account of reasons other than force majeure conditions or reasons specifically identified in the Agreement as those not under the reasonable control of the Seller shall be considered as a Sellers event of default and shall be dealt with in accordance with the provisions of clause 9.1.1 of the Agreement. 13 PPA 5.5.1: The coal company GCV (ARB) at unloading point should be As specified in the RFP, CIMFR will undertake Page 7
5.5.1 will issue Credit / Debit notes whenever there is a variation in the price of coal on account of grade variation between the grade of the coal for which advance payment has been made by GSECL on behalf of the Seller and the actual grade of coal received by the Seller at loading end. The actual grade of the coal at loading end will be based on the third party inspection carried out by CSIR-Central Institute of Mining and Fuel Research (CIMFR). 14 PPA 7.1.2 15 PPA 5.4.2 For this evaluation, the GCV of coal to be used will be corresponding to the grade of coal specified by Coal Company and vetted by Third Party sampling for the mine/linkage source. Based on the grade & quantity of coal estimated by GSECL and rate specified in 3.3.4, Seller shall work out upfront payment to be made to GSECL. Upfront payment will be required certified by CIMFR and the same ARB shall be used for coal consumption purpose. We request you to kindly consider ARB GCV at the unloading point for the purpose of Coal consumption, The Seller should be allowed to make payment for coal through Letter of Credit third party inspection at the loading end. As specified in the RFP, CIMFR will undertake third party inspection at the loading end. Mode of transfer of payment has to be through RTGS Only. Page 8
16 PPA 5.1.2 17 PPA - 3.1.1 to be made at least 15 days prior to the date on which the uploading of the coal from mine is required by the Seller. The Power will normally be scheduled at the agreed Tariff for the purpose of its consideration in the merit-order dispatch. However, the Seller shall have the flexibility to offer tariff less than the quoted tariff on dayahead basis in order to ensure increase scheduling of power Obtaining Open Access as per the relevant regulations of the Appropriate Commission for the quantum and duration of power supply. However, the situation such as Non-. TRN Energy Private Limited 18 RfS 1.1.2 Quantum of Power required 1000 MW Procurer to confirm that the minimum offtake clause of 80% applies on a monthly basis. Buyer to confirm that application may be for STOA/MTOA/Day Ahead basis The Procurement quantum is stated to b e 1000 MW, whereas in the attached PPA, the same is stated to be 500 MW. It is clearly mentioned in 3.2.2 of the PPA. Seller has to apply for the Open Access as per the relevant regulations of the Appropriate Commission for the quantum and duration of power supply. Requisitioned quantum is for 1000 MW. The clause 3(A) of the PPA to be read as given below: WHEREAS: (A) GUVNL has resolved to procure electricity from operational coal based power generating stations for a cumulative contracted capacity of 1000- MW in accordance with the terms and Page 9
Sr. 19 RfS 2.6.2 20 RfS 5.1.2 Further, in case of extension of the contract period on account of availability of excess coal at the end of the original contract period, the Seller shall be required to extend the validity of the Bank Guarantee for a period beyond 2 months after the expiry of the extended Contract Period as mentioned in the clause 2.2.1 of PPA. The Bank Guarantee shall be extended at least 7 days prior to expiry of the claim period of the original B.G. submitted by the Seller. In case of failure to extend the validity of the B.G. within the stipulated time period, GUVNL reserves the right to invoke the Performance Security issued in the form of Bank Guarantee by the Seller. If the Buyer s balance power requirement after Bucket filling is less than the available quantum offered by next Bidder, then the At the end of the original contract period, in case of excess coal availability, the contract period is stated to be extended for a period beyond 2 months. However, in case of shortfall of coal, the Seller shall be free to market coal to supply contract capacity. The least quoted tariff bidder shall be free to accept / reject the request of Buyer to supply balance power which is offered to the next Bidder above it. conditions set forth in the Power Purchase Agreement (PPA) to be entered into between the parties. Extension of the contract in case of availability of excess coal shall be in line with the provisions of the 2.2.1 of PPA. In case of shortfall, as per 7.2.5 of PPA, GUVNL has the option either to reduce the quantum of supply or to allow the seller to use fuel from other sources which may be available at the time with the consent of GUVNL. 5.1.2 of PPA is self-explanatory. change is required. No Page 10
Sr. 21 PPA - 2.2.1 22 PPA - 3.1.10 Bidder may accept or reject that quantum of balance power being offered. In case the Bidder rejects, successful Bidders in order of least quoted tariff shall be requested to provide balance power. This agreement shall be valid for a period commencing from, the effective date up to 30 th June 2018(Contract Period), unless terminated earlier. After coal reconciliation as detailed out in clause 7.2, if extra coal remains after the Contract Period, Seller will supply equivalent energy to the GUVNL at the same terms and conditions by 6 th September, 2018. Accordingly, the Contract period shall be deemed to be extended till 6 th September 2018 or till utilization of extra coal whichever is earlier. Any increase in freight charges on account of transfer of coal or in transmission charges shall be borne by the Seller during the contract period. If extra coal remains after the contract period, Seller will supply equivalent energy to the GUVNL, at the same terms and conditions by 6 th September, 2018 or till utilization of extra coal whichever is earlier...whereas as per RFP, the contract period is getting extended by 2 months, the PPA is enumerating date of 6 th Sept, 2018 or till utilization of extra coal It is requested that the contract period should not be kept open. The contract period shall include additional 30 days for payment of last month s bill. Any increase in transmission charges during the contract period shall be borne by GUVNL. Likewise any increase in Railway Freight notified by Railways shall also be payable by GUVNL to the Contract period is not open ended. The maximum period for which it can be extended is upto 6 th September, 2018 which is clearly stated. Contract period need not include the payment period allowed. As per clause 8.1 (x), outlined in the methodology by MoP dated 20.2.2017, any increase in the freight charges on account of transfer of coal or in transmission charges shall be borne by seller during the contract period. Page 11
23 PPA - 3.2.2 24 PPA - 4.1.1 GUVNL shall ensure that actual schedule shall not fall below an average 80% of the contracted power on monthly basis and not below technical minimum as specified by the CERC for each time block as per approved open access. GUVNL shall pay compensation at 10% of the Quoted Tariff per Kwh for the quantum of shortfall below 80% on monthly basis. The process of billing for the same shall be as outlined in clause 5.2.2 Seller shall comply with the provisions of the applicable Law regarding availability including, in particular, to the provisions of the ABT/Grid Code /any other applicable Codes and Regulations from time to time relating to declaration of Availability and the matters incidental thereto. Seller shall ensure that 100% contracted capacity is made available to GUVNL. Seller. Any reduction in schedule of contracted capacity shall be made on Round the Clock basis only within the overall limit of average 80% of the contracted power on monthly basis. The technical minimum of the Unit or the contracted capacity, whichever is lower, shall be the agreed schedule for each time block as per approved open access. This is a short term contract, wherein open access is applied on fixed quantum of power which the seller has to supply at the delivery point. Thus, there would not be any declaration of availability. No change is required. The applicable Open Access Regulation shall be followed for scheduling of the contracted capacity. As outlined in 4.1.1 of PPA, Seller has to comply with the provisions of the applicable laws/ regulations relating to availability and other related matters. 25 The transmission charges corresponding Transmission charges corresponding to the Page 12
26 PPA 4.3.2 Jaiprakash Power Ventures Limited 27 RfS 1.1.2/ 8 28 RfS - 1.1.3 / 8 29 RfS - 1.1.3 / 8 Delivery point: Gujarat States transmission Utility Periphery (CTU-STU interconnection point in case of power station located outside Gujarat and Generator Busbar i.e STU interconnection point in case of power station located within Gujarat) Table 1, Ash Content (%) Varies from 25% to 45% Table 1, STC to the power which is not scheduled by GUVNL shall be payable by GUVNL to the seller. Similar to commitment of 80% offtake by GUVNL, Seller should also be allowed to have commitment of supplying 8o% energy of approved open access. We understand that bidders who are located outside Gujarat need not to bear STU cost of Gujarat Transmission Utility. Please clarify or confirm We understand that there is high degree of variation in ash content. If ash content is more than 34%, seller will get the washed coal and need not arrange the washery facility. Please clarify or confirm Please define STC, further please clarify why STC has different values for different grade power which is not scheduled below 80% on monthly basis shall be payable by GUVNL to the Seller. Necessary changes are made in no. 4.1.1 & 4.1.2 of PPA. 1.1.2 (iv) clearly mentions that the Delivery point is Gujarat periphery and hence bidder is not required to bear cost of Gujarat Transmission Utility. Not agreed. If there is any requirement of washing the coal to comply with MOEF guidelines or any other reasons, the bidder has to make the requisite arrangements at his own cost. It is a Surface Transportation Charge and defined by SECL. This is the cost taken by CIL for transporting coal from the mine to the Railway siding from where they will be loading in Railway wagons. It does Page 13
Sr. 30 RfS - 1.1.3 / 8 31 RfS - 1.1.3 / 8 Table 1, GST Table 1, General We understand that GST should not be levied on royalty, cess and taxes, however in calculation it has been levied on Sub TTL We understand that any other taxes, levies, duties, cess etc. or any other statutory charges not mentioned in Table 1 would be a pass through. not vary with grades but varies with distance from mine to siding. Presently, SECL is charging GST on Invoice value i.e. including royalty, cess, taxes etc. and hence GST will be applicable on total invoice value. Only the taxes, levies, duties, cess etc. or any other statutory charges which are not in existence as on date of bid submission will be considered for purpose of pass through. It is the responsibility of the Bidder to do necessary due diligence in this regards. 32 RfS 1.1.4 Table 2, Band wise Coal Receipt details of Korea Rewa Coal (April 17 & May 17) Since GUVNL must be using the coal from these mines, therefore request you to mention the fired GCV from the coal obtained from these sources. Period of supply is from October 2017 to June 2018, therefore it is requested that data from September 2016 to June 2017 may please be provided for better assessment. Article 3.3.1 of PPA (Page no 59/84) indicates that The actual quantum of coal being made available will depend on the following factors (i) Contracted Capacity (MW); (ii) Gross Station Heat Rate Quoted by bidder Assessment of as fired GCV is subjective and is dependent on various factors including the vintage of the stock, climatic conditions etc. Hence may not be relevant in the present case. 33 RfS 1.2.2 Gross Station Heat Rate (SHR) quoted by Bidder has to be less than or equal to presently applicable CERC norm for equivalent unit size. Auxiliary Consumption quoted by Bidder The RFP specifies that the Bidder cannot quote SHR and Auxiliary consumption more than CERC norm for equivalent Power Station Capacity. Accordingly, the actual SHR or auxiliary consumption has no bearing on the participation of the bidder in the bidding process. Page 14
34 RfS 2.4.1 35 RfS 3.2.2 (C & J) has to be less than or equal to presently applicable CERC norm for equivalent Power Station Capacity Validity of Bid Article C and J (kcal/kwh) or as specified by CERC for equivalent unit capacity, whichever is lower. Therefore it indicates that IPPs having plants whose SHR and APC is even higher than that specified by CERC may also be qualified but the quantum of coal being made available is as per Article 3.3.1 of PPA. Please clarify or confirm If signing of PPA extended by GUVNL than Bidder should have option to exit without forfeiting the Bid Security. We understand both articles are same i.e. Non-submission of receipt of fees submitted to PFCCL along with RFP Document. Please clarify or confirm 36 RfS 7.9 Annexure 1 Name of Banks Please suggest the course of action if the associated banker of the seller is other than what mentioned in clause 7.9 37 PPA - 3.1.1 Obtaining Open Access as per the relevant regulations of the Appropriate Commission for the quantum and duration of power supply. We understand that Obtaining Open Access as per the relevant regulations of the Appropriate Commission for the quantum and duration of power supply is the onus of seller, however request you For the purpose of this tender, the SHR and auxiliary consumption quoted by the Bidder, subject to the condition prescribed in the RFP, will only be considered. The validity of the bid security as per the RFP is 120 days and there is no provision for extension of the same. Accordingly, the bid validity is enforceable by GUVNL for maximum period of 120 days from the date of bid submission. 3.2.2 (j) is deleted.. No other Banks are allowed. Bid Security and Performance Security issued by banks other than mentioned in Annexure-1 will be considered as invalid and hence Bid will be considered to be Non-responsive. GUVNL shall endeavor to facilitate the Bidders in obtaining Open Access. However, it shall be sole responsibility of Seller To obtain Open Access and GUVNL shall not be held responsible for the same. Page 15
Sr. 38 PPA - 3.1.3 39 PPA 3.1.10 40 PPA - 3.1.12 However, the situation such as non-supply of coal by Coal Company to the Seller shall be treated as "Force majeure" and there will be no liability on either parties. Any increase in freight charges on account of transfer of coal or in transmission charges shall be borne by the Seller during the Contract Period. Any impact (positive or adverse) of the credit / debit notes raised by the coal companies on account of grade variation based on the report of the third party sampling and analysis undertaken by CIMFR shall be borne by the Seller as outlined in clause 5.4. to clarify will GUVNL facilitate in obtaining open access. We understand that the situation such as non-supply of coal by Coal Company to the Seller shall be treated as "Force majeure" however there is no mention of rake availability or role of Indian Railways. Request you to add the following the situation such as nonsupply of coal by Coal Company or by Indian Railways to the Seller shall be treated as "Force majeure" and there will be no liability on either parties. Since sellers have no control over railway freight charges and transmission charges, therefore request GUVN to consider any increase in freight charges on account of transfer of coal or in transmission charges as a pass through and vice versa. Since one grade has a spread of 300 Kcal, therefore request you to link the mentioned clause with GCV. Hence the clause may be written as Any impact (positive or adverse) of the credit / debit notes raised by the coal companies on account of GCV variation based on the report of the third party sampling and analysis undertaken by No change is required. As per clause 8.1 (x), outlined in the methodology by MoP dated 20.2.2017, any increase in the freight charges on account of transfer of coal or in transmission charges shall be borne by seller during the contract period. No change is required. It is not possible to link with GCV as coal is billed by CIL Grade wise and CIMFR is also submitting third party inspection results Grade wise. Page 16
Sr. 41 PPA 4.1.2 42 PPA 5.5.3 Any shortfall in availability below 100% contracted capacity on account of reasons other than force majeure conditions or reasons specifically identified in the Agreement as those not under the reasonable control of the Seller shall be considered as a Sellers event of default and shall be dealt with in accordance with the provisions of clause 9.1.1 of the Agreement. In case of the normal scenario wherein the credit note is issued by the Coal Company only on account of variation in grade of coal for which the payment has been done by the GSECL to the Coal Company and the actual CIMFR shall be borne by the Seller as outlined in clause 5.4. Request you to consider the reliability of machines also. At times emergency breakdown/unplanned outages may occur even after adopting best O&M strategy. Therefore request you to give margin for such incidence. Further, the clause should be equal to both the Parties. Hence the clause may be amended as Any shortfall in availability below 80% contracted capacity on account of reasons other than force majeure conditions or reasons specifically identified in the Agreement as those not under the reasonable control of the Seller shall be considered as a Sellers event of default and shall be dealt with in accordance with the provisions of clause 9.1.1 of the Agreement. Please provide the framework of inspection by third party comprising of points from where samples may be taken (both loading and delivery points) and frequency of tests ( after arrival every lots) The clause 4.1.2 to be read as: 4.1.2 Any shortfall in availability below 80% contracted capacity on monthly basis on account of reasons other than force majeure conditions or reasons specifically identified in the Agreement as those not under the reasonable control of the Seller shall be considered as a Sellers event of default and shall be dealt with in accordance with the provisions of clause 9.1.1 of the Agreement. CIMFR is appointed by the committee constituted by the MoP/MoC to collect sample and do the analysis at the Loading end. CIMFR collects the sample from 6 nos. of wagons in a railway rake at the time of loading of coal in the Railway wagons. It normally takes 18-30 days for the Analysis result to reach GSECL from CIMFR. Page 17
43 PPA 7.1.2 44 PPA 3.3.1 DB Power Limited 45 RfS 2.5.1 grade of coal as provided by Coal Company based on third party inspection then the entire credit received by GSECL from the Coal Company will be passed on to the Seller. For this evaluation, the GCV of coal to be used will be corresponding to the grade of coal specified by Coal Company and vetted by Third Party sampling for the mine/linkage source. Normative Transit losses as specified in the prevailing CERC Regulations shall be considered for the purpose of computation of quantity of coal. Regarding Bid security of Rs. 273000 per MW Please provide the framework of inspection by third party comprising of points from where samples may be taken (both loading and delivery points) and frequency of tests ( after arrival every lots) Since bidder /sellers have no control over transit losses, therefore it would not be judicious to penalize the seller for the same. Therefore, transit losses may be considered as per actual basis. Hence the clause may be modified as Actual Transit losses as specified in the prevailing CERC Regulations shall be considered for the purpose of computation of quantity of coal. We request to amend the 2.5.1 of RFQ issued by GUVNL as per the Guidelines issued by Government of India dt 20.02.2017 Sampling will be done at the loading end only and frequency will be as decided by CIMFR. Normative transit losses as specified in CERC regulations shall be considered as per provisions of the methodology outlined by MoP dated 20.2.2017. No change is required. Bid Security amount Rs. 273000 per MW is calculated as per 4.1.3 of the Guidelines issued by MoP, Government of India dt 20.02.2017 only. Page 18
46 RfS 2.6.1 47 PPA 3.1.3 Regarding Performance Guarantee Rs. 18.2 lakh per MW Payment of transmission charges by buyer to seller in case of force majeure due to non availability of coal from coal company We request to amend the 2.6.1 of RFQ issued by GUVNL as per the Guidelines issued by Coordination with such as non supply of coal by coal company to the seller shall be treated as force Majure and buyer Shall be liable to pay transmission charge for power surrender due to non-availability of coal 48 The third party sampling of coal should be carried out at the plant end. 49 As per tender document date of signing of PPA is 22.09.2017. Lifting of coal will take at least 15 days thereafter. Hence we request to shift the date of commencement of power supply by at least 2 Weeks. 50 RfS - Table 2 The GCV wise coal receipt details for Korea Rewa coal is provided for month of Apr'17 & May'17. It is requested to provide similar details for Korba coal as well. Performance Guarantee amount Rs. 18.2 lakh per MW is calculated as per 6 (iii) of the Guidelines issued by MoP, Government of India dt 20.02.2017 only. No change is required. As per clause 13.1 of guidelines issued by MOP dated 20.2.2017, the GCV of coal to be used will be corresponding to the grade of coal specified by Coal Company and vetted by the Third Party sampling for the mine/linkage source. Accordingly, CIMFR is undertaking third party inspection at loading end only. Results of the E-Reverse Auction process will be known by 08 th September, 2017 and accordingly the short-listed bidders can start necessary preparation for meeting contractual/ operational obligations. 100% Sampling has not been started by CIMFR at korba field. Generally based on past experience G11/G10 band coal is available from Korba field. Page 19
51 How is it proposed to achieve the sharing ratio of 80:20 between Korba and Korea Rewa coal is not clear. Will it be ensured on month to month basis? 52 RfS - 1.2.2 Gross SHR should be less than or equal to CERC norms. CERC norm is 1.045*2267 kcal/kwh. Should the Gross SHR quoted be less than 2369 kcal/kwh (or) 2267 kcal/kwh? 53 2.2.2 Bidder should be allowed to decrease the bid quantity as well. In case Bidder had bid for 500 MW initially, but is willing to reduce the bid price further for a less quantity, say 200 MW or 300 MW, then bidder should have option of reducing the bid quantity as well. Allowing bidder to reduce the bid quantity is favorable for Discom. 54 RfS 3.2.2 (b) & (c) says non-submission of bid security & receipt of fees will be considered non-responsive. (j) says submission of bid security & receipt of fees will be considered non-responsive. Both these clauses are contradictory to RFP clause no. 1.1.3 shall be modified as under: Coal will be made available through coal linkages allocated to GSECL which is a subsidiary company of GUVNL. GSECL shall submit requisition to SECL for supply of coal to the Seller from Korea Rewa and Korba Coal fields in the indicative ratio of 35:65 respectively. Actual supply by SECL may differ. As per CERC norm, SHR is 2369 kcal/kwh in the given example. No change is required. 3.2.2 (j) is deleted Page 20
Sr. 55 PPA - 3.3.1 (v) each other. In case Ministry of Railways says transfer of coal is not feasible, then option should be left to the Seller either to withdraw the financial bid (or) to continue with the same bid through other modes of transport. As per clause 1 (iv), of the methodology outline by MOP dated20.2.2017, the IPP where transfer of coal is not feasible by Railways would not be eligible to participate in RFP stage. Accordingly, primary mode of transport has to be railway upto railway siding nearest to the power plant. Seller can use other mode of transport from nearest railway siding to power plant. Bidder is required to mention nearest railway siding in the technical bid. 56 Recital 3 (A) 57 PPA - 3.1.3 Recital (A) mentions the cumulative contracted quantum as 500 MW. It should be corrected as 1000 MW In some cases, even though coal may be allocated by coal company, actual coal lifting may not materialize due to nonallocation of required rakes by railway. Requisition quantum is for 1000 MW. The clause 3(A) of the PPA to read as given below: WHEREAS: (A) GUVNL has resolved to procure electricity from operational coal based power generating stations for a cumulative contracted capacity of 1000 MW in accordance with the terms and conditions set forth in the Power Purchase Agreement (PPA) to be entered into between the parties. No change is required. Page 21
Sr. 58 PPA 3.3.1 59 PPA 4.1.1 60 PPA 5.1.2 61 PPA 5.5.4 Non-allocation of rakes by Railways should also be considered as force majeure For plants located at distance of about 100 kms, will transit loss be considered as 0.2% (or) 0.8%. Seller s obligation to supply should be same as that of buyer s obligation to purchase i.e. 80% of contracted capacity to take care of forced outages. Supply of 100% contracted capacity is not technically feasible. Further, the power surrender should be on RTC basis only. If the power is curtailed by SLDC due to merit order dispatch then GUVNL shall bear the transmission charges for such period of curtailment. It is not clear from the clause whether the ratio for sharing of credit/debit note would be calculated as per the price of coal based on originally billed GCV or actual GCV. Normative transit loss of 0.2% will be applicable for plants located at distance of upto 100 kms from the mine and for all others, normative transit loss of 0.8% will be applicable. The clause 4.1.1 to be read as: 4.1.1 Seller shall comply with the provisions of the applicable Law regarding Availability including, in particular, to the provisions of the ABT/Grid Code / any other applicable Codes and Regulations from time to time relating to declaration of Availability and the matters incidental thereto. Seller shall ensure that at least 80% contracted capacity is made available to GUVNL on monthly basis. Transmission charges corresponding to the power which is not scheduled below 80% on monthly basis shall be payable by GUVNL to the Seller. The revised 5.5.4 of PPA is as under: The amount of Debit or credit arising out of variation in grade of coal shall be passed on to the Seller while the impact of price variation shall be borne by GUVNL. The required modification is made in the PPA document Page 22
Sr. accordingly. 62 PPA - 7.2 In case the proportion of coal between Korba & Korea is not in the ratio 80:20, then seller shall have option of not lifting the costlier coal and accordingly supply less power. 63 PPA 8.1.1 (b) Any restriction from Coal Supply Company or Railways should be force majeure. 64 In case, third party sampling is not done by CIMFR (or) by other third party appointed by GSECL, the results of sampling done by Seller should be considered for purpose of determining the actual GCV of coal supplied. Not acceptable. Further, RFP clause no. 1.1.3 shall be modified as under: Coal will be made available through coal linkages allocated to GSECL which is a subsidiary company of GUVNL. GSECL shall submit requisition to SECL for supply of coal to the Seller from Korea Rewa and Korba Coal fields in the indicative ratio of 35:65 respectively. Actual supply by SECL may differ. As per 8.1.1 of PPA, any restriction imposed by Coal Company on supply of Coal is treated as Force Majeure event. However, inclusion of restriction by Railways cannot be accepted as Force Majeure event. The Sampling is to be done at the loading end and not unloading end. CIMFR has been appointed as per the committee constituted by MoP/MoC. So it is compulsory for GSECL to carry out sampling of coal at loading end through CIMFR. For commercial purpose with CIL only Loading end Analysis done by CIMFR is considered. So if in any case CIMFR cannot carry out the sampling. Then in that case the declared Page 23
Adani Power Limited 65 RFP 1.1.3 66 RFP 1.1.4 67 RFP 4.1.1 68 PPA 3.1.8 Table 1: Reference rates of coal (grade-wise) existing on the date of submission of the proposal by the Seller. GUVNL does not provide any guarantee regarding grade of coal to be supplied by Coal Company. The shortlisted Bidder after elimination will be intimated individually by system generated emails only. The Reverse auction should start within 120 minutes of opening of Initial Price Offers. All GST/Cess/Taxes (including GST) on coal as applicable on the date of bidding shall be paid by GSECL and reimbursed by Seller. Kindly provide current coal cost at loading siding including GST. Kindly modify the clause as below: GUVNL/GSECL does not shall provide guarantee regarding grade of coal to be supplied by Coal Company. Whether Seller has to mention IPO (in MW) and maximum quantum of power (in MW) with respect to bid security in Financial Bid. Kindly clarify. We understand that Seller shall be responsible for all taxes and duties applicable as on Bid Due Date. Any variation in taxes and duties after the Bid Due Date shall be borne by GUVNL/GSECL. Kindly confirm. Rationale Provided: It shall be GSECL/ GUVNL s responsibility to bear the variation of price in coal due grade of coal by Coal company shall be considered for purpose of determining the actual GCV of coal supplied. Seller will be billed based on the rate of coal (grade-wise) existing as on the date of submission of the proposal. Indicative reference rates of coal (grade-wise) have been provided in Table 1. GUVNL/GSECL has no control over the grade of coal supplied by the coal company and hence no change is required. Seller has to mention IPO in Rs./kWh and the capacity offered in MW. As per 2.2.2 of RFP, the maximum quantum of power (in MW) which can be bid by the Bidder is dependent on the available operating capacity and Bid Security provided by the Bidder. Only the taxes, levies, duties, cess etc. or any other statutory charges which are not in existence as on date of bid submission will be considered for purpose of allowing pass through to GUVNL. It is the responsibility of the Bidder to do necessary due diligence in this regards. Page 24
Sr. 69 PPA 3.1.10 70 PPA 3.2.2 71 PPA 4.1.1 & 4.1.2 Any increase in freight charges on account of transfer of coal or in transmission charges shall be borne by the Seller during the Contract Period. GUVNL shall ensure that actual schedule shall not fall below an average 80% of the contracted power on monthly basis and not below technical minimum as specified by the CERC for each time block as per approved open access. GUVNL shall pay compensation at 10% of the Quoted Tariff per kwh for the quantum of shortfall below 80% on monthly basis. 4.1.1 Seller shall ensure that 100% contracted capacity is made available to GUVNL. to changes in taxes & duties after bid submission date. Any increase in freight charges on account of transfer of coal shall be borne by GUVNL/GSECL and transmission charges shall be borne by the Seller during the Contract Period. Rationale Provided: Any variation in freight charges is responsibility of the GUVNL/GSECL as it is beyond the control Seller. GUVNL shall ensure that actual schedule shall not fall below an average 80% of the contracted power on monthly basis and not below technical minimum as specified by the CERC for each time block as per approved open access. GUVNL shall pay compensation at 25% of the Quoted Tariff per kwh for the quantum of shortfall below 80% on monthly basis. Rationale Provided: In reference to model bid document on basis of DBFOO, it should be 25%. Seller shall ensure that 80% contracted capacity on cumulative basis is made available to GUVNL. The present agreement is a short term agreement and the bidder has to envisage and factor in any increase / decrease in freight charges on account of transfer of coal during the contract tenure in his quoted tariff. No change is required. Referred is as per the provisions of the Guideline issued by the Ministry of Power in the matter of flexibility in utilization of domestic coal and other measures for reducing the cost of power generation reg. dated 20 th February, 2017. No change is required. The clause 4.1.1 & 4.1.2 to be read as: 4.1.1 Seller shall comply with the provisions of the applicable Law regarding Availability including, in particular, to the provisions of the Page 25
4.1.2 Any shortfall in availability below 100% contracted capacity on account of reasons other than force majeure conditions or reasons specifically identified in the Agreement as those not under the reasonable control of the Seller shall be considered as a Sellers event of default and shall be dealt with in accordance with the provisions of clause 9.1.1 of the Agreement. Rationale Provided: Maintaining of 100% availability for every month is difficult since there is a possibility of forced shutdown, emergency shutdown, technical problem, or any such event, which is beyond control of Seller and not covered under Force Majeure event as in case of any shortfall, it is directed to the termination clause 9 and under this clause, the Seller shall pay termination amount equivalent to 10% of energy that would have been scheduled at the agreed tariff for period of 1 month or the balance period of contract. Due such to such high risk, it is requested to reduce the availability to 80% capacity on cumulative basis. ABT/Grid Code / any other applicable Codes and Regulations from time to time relating to declaration of Availability and the matters incidental thereto. Seller shall ensure that at least 80% contracted capacity is made available to GUVNL on monthly basis. 4.1.2 Any shortfall in availability below 80% contracted capacity on monthly basis on account of reasons other than force majeure conditions or reasons specifically identified in the Agreement as those not under the reasonable control of the Seller shall be considered as a Sellers event of default and shall be dealt with in accordance with the provisions of clause 9.1.1 of the Agreement. Such 100% availability clause is not mentioned in model draft document of Case 4: Flexibility in utilization of coal in IPP Stations. Lower availability due to any event, which is beyond control of Seller and not covered under Force Majeure event and in case of any shortfall, it is directed to the termination. Page 26
72 PPA 4.1.1 & 4.1.2 73 PPA 5.1.2 74 PPA 5.4.4 4.1.1 Seller shall ensure that 100% contracted capacity is made available to GUVNL. The Power will normally be scheduled at the agreed Tariff for the purpose of its consideration in the merit-order dispatch. In case the amount paid by the Seller to GSECL as upfront payment for procurement of coal is higher than the bill raised by the Coal Company to GSECL based on the actual coal supplied, then GSECL shall adjust this additional amount in the subsequent upfront payment to be recovered from the Seller. It is requested to allow alternate supply of power by Seller in case of power from plant is not available due to any reason beyond control of Seller and not covered under Force Majeure Event. DELETED. It should be under must run status. Rationale Provided: Such merit order dispatch clause is not mentioned in model draft document of Case 4: Flexibility in utilization of coal in IPP Stations. In case the amount paid by the Seller to GSECL as upfront payment for procurement of coal is higher than the bill raised by the Coal Company to GSECL based on the actual coal supplied, then GSECL shall adjust this additional amount in the subsequent upfront payment to be recovered from the Seller. In case GSECL shall not adjust the additional amount in next month then GSECL shall pay late payment surcharge at the rate of 1.5% per month on the additional amount. 75 PPA 5.6 Disputed Amounts 5.6.3 GUVNL shall pay 75% of the disputed amount within 7 days of receiving the Not allowed. This power will be scheduled based on meritorder despatch, subject to provisions of Short- Term Open Access if applicable. The PPA has clauses pertaining to compensating the Seller in case the actual schedule falls below an average 80% of the contracted power on monthly basis. No change is required. No change is required. Page 27
Sr. 76 PPA - 6.1.4 In the event that the amount covered by the Letter of Credit is at any time insufficient for recovery of payment due against the Monthly Invoice, GUVNL shall, within a period of 7 (seven) days from the date on which such shortfall occurred, cause the Letter of Credit to be replenished and reinstated to the extent specified in 6.1.1. invoice. If dispute is resolved in favour of Seller, then GUVNL shall pay rest of the disputed amount within 3 business days with the interest of 1.5% from the date of the amount in Dispute was under the invoice until the date of payment. Similarly, if dispute is resolved in favour of GUVNL, the Seller shall pay the disputed amount plus interest of 1.5% from the date of the amount in Dispute was due under the invoice until date of payment. Rationale Provided: It will be a financial implication on Seller if in any case GUVNL dispute the invoice. In the event that the amount covered by the Letter of Credit is invoked by Seller at any time insufficient for recovery of payment due against the Monthly Invoice, GUVNL shall, within a period of 7 (seven) days from the date on which such shortfall occurred, cause the Letter of Credit to be replenished and reinstated to the extent specified in 6.1.1. In case GUVNL fails to replenishment such amount under Letter of Credit within 7 days from invoke by Seller then it shall be directed No change is required. Page 28
Sr. 77 PPA 3.1.1 & 8.1 78 PPA 9.1.1 Seller Event of Default c) Use of GSECL coal supply to third party without consent of to GUVNL s Event of Default. Rationale Provided: The Letter of Credit should be replenished by GUVNL within 7 days of invoking such amount/ shortfall in such amount otherwise it should be falls under GUVNL event of default. Also, similar clause needs to be added under 9.1.2: GUVNL/GSECL event of default. 8.1.1 (g) Non-grant of Open Access/quantum not granted open access to the Seller shall be treated as Force Majeure and there will be no liabilities on either side. Rationale Provided: As it is mentioned in 3.1.1 of PPA that Non-grant of Open Access/quantum not granted open access to the Seller shall be treated as Force Majeure and there will be no liabilities on either parties therefore similar clause shall be mentioned under the Force Majeure Event clause in 8.1. We understand that in case of remaining excess energy after energy scheduled to GUVNL, the Seller shall have right to sell Accepted. The provision will be included in the 8.1.1 of PPA. Use of GSECL coal for supply of power to third party is not allowed and it will be treated as Seller event of default. All the power generated Page 29