E-Reverse Auction starts Bulk Purchase of Major Power Equipment

Ministry of Power-indianbureaucracy
Ministry of Power-indianbureaucracy

With an objective to enhance transparency in procurement of large scale power equipments by State power utilities and economize the pricing, Power Grid today commences E-Reverse auction ( eRA) for 25KVA Distribution Transformers and Aerial Bunch Cables. The eRA which is second in series is being conducted today with the provision of auto extension on MSTC web portal from 12:00 pm to 2:00 pm for 25KVA Distribution Transformers and from 1:00 pm to 3:00 pm for Aerial Bunch Cables. Power Grid is conducting this eRA for bulk procurement of major power equipments like Transformers, Cables & Conductors under Integrated Power Development Scheme (IPDS) and Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) on behalf of committee appointed by Ministry of Power.


Integrated Power Development Scheme (IPDS) and Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) are the two flagship schemes launched by Ministry of Power, Govt. of India. To facilitate and hand hold states in mobilising major items with standard Technical Specifications at competitive price through transparent bidding process under these schemes,  two high power committees were constituted.

Members from important central government bodies like CEA, REC, PFC, PowerGrid and from various State Utilities are members of these committees. The   process involves to list out major equipment/material, finalization of technical specification, aggregate requirement from various states, under take vendor empanelment, prepare bidding documents, to carryout bidding process through E-tendering under Reverse bidding mode and to finalize  the most competitive price.

The whole task was designed to be completed in 2 steps – empanelment of vendors and  price bidding. The complete process is being undertaken in the most transparent manner through E-Tendering and strictly in line with the approved bid documents.

Bidders conferences were held time to time to explain the methodology and to clear their doubts, if any. Many valuable suggestions came during these interactions which were also incorporated after discussions in high power committee meetings. The team consisting of members from different organizations visited works of every bidder to assess adequacy of their plant & machinery, manpower, system & procedures etc. After scrutiny of their technical & financial capability, total of 137 vendors were recommended for empanelment.

For price bidding, services of M/s MSTC Ltd have been taken. E-Reverse Auction (eRA) is being done under different lots. A “Lot” is based on specification-wise requirements of states. Lowest N/2  or (N+1)/2, if N is odd or minimum 7 bidders will be eligible to participate in eRA, “N”  being the  number of bidders  who submitted Initial Price Offer (IPO). The eligible bidders will be selected and intimated automatically by the system itself. eRA commences  60  minutes after opening of IPO.

The IPO submission for Power & Distribution transformers was closed on 25/2/16 and for Conductor & Aerial Bunched cable (AB Cable) on 29/2/16. Opening of IPO followed by E-Reverse Auction has commenced from Ist April’16 onwards and is expected to be completed progressively by end of April’16.

The above bids are for approx. 40% of total quantity. Balance 60% shall be bid in II & III phases which will be undertaken shortly.

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