Jaipur: The state govt has cancelled its tender to procure electricity from a proposed 3,200 MW coal-fired power plant, a move that could spare consumers the cost of potentially surplus generation capacity.In an order issued on June 11, Rajasthan Urja Vikas and IT Services Ltd (RUVITL) scrapped the tender floated for long-term power procurement from a thermal plant proposed under the Design, Build, Finance, Own and Operate (DBFOO) model.The decision is significant as experts and consumer groups had questioned the need for the additional capacity, citing the Central Electricity Authority’s Resource Adequacy Plan, which indicated that Rajasthan’s projected power demand could be met without adding another 3,200 MW coal-based plant during the planning period.“While the tender witnessed extensions since it was floated in Dec 2024,” sources said.The cancellation also comes after the Rajasthan Electricity Regulatory Commission (RERC) recently directed RUVITL to justify the need for the proposed capacity addition. In the order, RERC imposed conditions. It is likely that the after complying with the conditions, RUVITL might again go to the Commission with a revised petition and if approved, a new tender is likely to be floated.Power sector analysts said the withdrawal reflects growing recognition that Rajasthan’s rapidly expanding renewable energy capacity, along with battery energy storage systems and access to interstate power, may reduce the need for costly new coal-based generation.
