Government asks power plants to auction fly ash through transparent bidding process


The Energy Department on Wednesday issued a notice for power plants to auction fly ash as part of a transparent bidding process.

Power plants have been ordered to invariably auction fly ash through a transparent bidding process and a notice was issued by the ministry on September 22, 2021 to this effect. This will reduce the electricity tariff and the burden on consumers, ” according to a statement from the Ministry of Energy.

According to the statement, Union Energy and New and Renewable Energies Minister RK Singh held a meeting on Wednesday to review the status of fly ash transport to end users and their use.

The meeting took place in the presence of the President of the Central Electricity Authority (CEA); CMD, NTPC; President, DVC; and senior ministry officials.

The notice stipulated that power plants should deliver fly ash to end users through a transparent tendering process only.

If, after the auction / auction, a certain amount of fly ash remains unused, only then, as one of the options, could it be considered as given away free of charge on a first come, first served basis if the agency user is willing to bear the cost of transportation, he said.

If the ashes remain unused even after the measures taken as above, the thermal power plant (TPP) will bear the cost of transporting the fly ash to be provided free of charge to eligible projects.

End users will be forced to source fly ash from the nearest TPPs in order to reduce transport costs. If the nearest TPP refuses to do so, the end-user project will have to contact the Energy Ministry for the proper instructions, he added.

Transport costs, when they are to be borne by the power plants, in accordance with the provisions of a notification from the Ministry of the Environment, will be discovered on the basis of a call for tenders only.

Each year, the TPP will prepare a panel of transport agencies, on the basis of a call for tenders for transport in slabs of 50 km usable for the period. TPPs should launch a call for tenders well in advance so that a transport panel is in place as soon as the previous panel expires. There should be no gap between the expiration of a panel and the finalization of the new panel, he added.

Fly ash will be offered to end users on the basis of competing demand, i.e. end users who offer the highest price and seek minimum support for transportation costs will be offered fly ash in priority.

Power plants can offer fly ash subject to their technical restrictions such as any precautions required for the stability and safety of dikes etc. Plants with lower ash utilization should strive to increase utilization as per the advisory.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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