The Power Ministry has launched a scheme for procurement of 4,500 MW of aggregate electricity for a period of five years.

The provision of procurement of electricity would be conducted under the ministry's Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) policy.

"Ministry of Power kicks off a scheme for procurement of aggregate power of 4,500 MW on competitive basis for five years on finance, own and operate (FOO) basis under SHAKTI Policy," a statement issued by the Power Ministry said.

PFC Consulting Ltd, a wholly-owned subsidiary of Power Finance Corporation (PFC Ltd), has been made the nodal agency by the power ministry for the scheme.

Under the scheme, PFC Consulting Ltd has invited bids for the supply of 4,500 MW of electricity. The supply will commence from April 2023 and the coal ministry has been requested to allot around 27 million tonnes per annum of dry fuel for it.

Some of the entities which have shown interest in the scheme are Gujarat Urja Vikas Nigam Ltd, Maharashtra State Electricity Distribution Company Ltd, Madhya Pradesh Power Management Company Ltd, New Delhi Municipal Corporation and Tamil Nadu Generation and Distribution Corporation Ltd. The last date for bid submission is December 21, 2022.

The scheme is expected to help those states which are facing power shortage and will also help increase capacity of generation plants, official sources said.