Rajasthan Floats Tender for 3,200 MW Coal-Based Power, Focusing on State’s Energy Security
Introduction
The state government of Rajasthan floated a tender for the long-term purchase of 3,200 MW of power from coal-based thermal power plants. Rajasthan Urja Vikas and IT Services Limited (RUVITL) has floated the tender, which calls for the whole capacity of the plant to be within the state of Rajasthan. The tender arrives at a time when the state is considering its future power requirements, and it has drawn attention because of the benefit it presents to organisations already planning thermal power projects in the state.
The tender is a departure from the state’s previous move to club coal and solar power projects in a single tender, which was withdrawn following criticism from experts and stakeholders. This time, thermal power is the sole focus in accordance with the priorities of Rajasthan for a stable and decentralised power supply.
Details of the Tender
The tender calls for the project with four units of 800 MW each, totalling 3,200 MW. Commissioning within 42 to 60 months, which is longer than the normal 36 months in the model bidding guidelines, has caused concern to some parties. The government requires the company to be chosen to provide all the equipment required, handle the construction, and complete the project on schedule.
The auction has been issued sans the approval of the Rajasthan Electricity Regulatory Commission (RERC). The regulator has raised concerns of “data gaps” in the rationale of the state government and has yet to pass its final order. The Central Electricity Authority (CEA) earlier reduced Rajasthan’s coal-based power requirement for 2031-32 by 3,750 MW, which shows that the requirement for this capacity could be lower than asserted. The Energy Assessment Committee (EAC), nonetheless, contended that upon adjusting for retiring units and future demand, the state would require extra capacity, which was the premise of the 3,200 MW tender.
The tender also requires the plant to be within Rajasthan, something that has been criticised for benefiting firms already expanding coal-based ventures in the state. The RUVITL has declined applications by other interested bidders for the extension of the commissioning date or division of the project into smaller units.
Who Can Apply
The tender is available for private and public firms that have the potential to set up coal-based thermal power projects in Rajasthan. Firms should be able to provide the capacity requirement and conform to the location and commissioning rules. Firms already in the preparation phase of thermal power projects in Rajasthan would be at an advantage.
For instance, Adani Power Ltd is said to be in the process of increasing its current 1,320 MW Kawai Thermal Power Plant by 3,200 MW, putting it in a good position to bid for this tender. The firm has already ordered equipment, providing it with a head start over other firms. Other firms, including Torrent Power Ltd, have submitted requests for changes to the structure of the project, such as decreasing the size of units or the length of timelines, but these have been denied.
How to Apply
Eligible companies are required to send in their financial and technical proposals to RUVITL on or before November 13, 2025. Tender documents, eligibility, and comprehensive guidelines may be found on the RUVITL website. Bidders should ensure strict adherence to all technical, regulatory, and legal requirements, offer a clean project schedule, and include cost estimates for commissioning and construction of the plant.
Companies must also take into account possible risks involving coal supply, shipping costs, and regulatory approvals. The tender notices emphasise that imported coal is to be utilised in the event of deficiencies, with an impact on project expenses.
The 3,200 MW thermal power tender is a strong opportunity for players to get long-term power purchase agreements in Rajasthan. It reflects the efforts of the state to boost its coal-based power capacity and balance future energy needs. The tender has also generated debate on regulatory compliance, fairness, and competitive access, particularly given that clearance by the RERC is yet to be obtained.
For those companies that can deliver technical and time terms, this tender may be strategically beneficial, particularly for those who are already in the process of planning large thermal projects in Rajasthan. The decision will decide the future energy security of the state and mirrors the increasing significance of coal-based power purchasing in Indian energy planning.
FAQs
1. What is the tender about?
The tender is for the long-term procurement of 3,200 MW of electricity from coal-based thermal power plants to be established within Rajasthan. It aims to strengthen the state’s coal-based power capacity.
2. Who has issued the tender?
The tender has been floated by Rajasthan Urja Vikas and IT Services Limited (RUVITL), under the supervision of the Rajasthan state government.
3. How is the project structured?
The project requires the construction of four units of 800 MW each, totalling 3,200 MW. The commissioning timeline is set between 42 and 60 months.
4. Who can apply for this tender?
The tender is open to private and public companies capable of establishing coal-based thermal power plants in Rajasthan. Companies must meet all technical, capacity, and regulatory requirements.
5. Is prior approval from the regulator required?
Normally, the Rajasthan Electricity Regulatory Commission (RERC) must approve such tenders. In this case, the tender has been floated before RERC approval, which has raised some concerns among stakeholders.
6. How do companies submit bids?
Interested companies must submit technical and financial bids to RUVITL. Detailed tender documents, guidelines, and eligibility criteria are available on the RUVITL website. The deadline for submission is 13 November 2025.
7. Are there any location requirements for the project?
Yes, the entire plant capacity must be located within Rajasthan. This requirement is intended to provide economic and technical benefits to the state.
8. What are the advantages for companies already preparing projects in Rajasthan?
Companies like Adani Power, which are already expanding existing thermal power plants in Rajasthan, have a competitive advantage because they have already placed equipment orders and are aligned with the tender’s commissioning timeline.
9. What are the main concerns raised by stakeholders?
Stakeholders have questioned:
- Whether Rajasthan truly needs 3,200 MW of new coal-based capacity
- The pre-emptive floating of the tender without RERC approval
- Tight commissioning timelines and location restrictions
- Potential high coal transportation costs
10. What is the purpose of this tender for Rajasthan?
The tender aims to ensure a reliable and adequate coal-based power supply for the state in the coming decades while providing long-term power purchase opportunities for qualified companies.
