PFC to be states' consultant for power purchase.

Power Finance Corporation (PFC) has been mandated to be a consultant for all states for long- and medium-term power procurement. The decision comes with the power ministry finalising model bidding, aimed at bringing greater transparency to purchase agreements.

Prime minister Manmohan Singh had suggested model bidding to prevent financial irregularities in the government.

Under model bidding, all case-1 operators setting up plants on the design-build-finance-operate-transfer (DBFOT) basis and case-2 operators setting up plants on the design-build-finance-own-operate (DBFOP) basis will have to bid according to the guidelines of the model bidding document.

The Financial Express