The Ministry of Power (MoP) has released guidelines under section 63 of the Electricity Act, 2003 for procurement of power on finance, own and operate (FOO) basis under para B(v) of the SHAKTI policy.
The objective of these guidelines is to facilitate procurement of power on long-term and medium-term basis by the nodal agency through transparent bidding to meet power requirement of group of states with coal linkage as per para B(v) of the SHAKTI Policy. The long-term procurement of electricity will be for a period of 12 years to 15 years; while medium term procurement will be for a period of up to 7 years but exceeding 1 year. According to these guidelines, the date of commencement of supply under the contract will not be less than 120 days for medium term contract, and not less than 1,460 days for long term contract.