The West Bengal government has invited applications from developers to establish two major supercritical thermal power projects under the tariff-based competitive bidding (TBCB) route. The proposed expansion includes a 2x800 MW plant at the Santaldih Thermal Power Station (STPS) and a 1x660 MW unit at the Bakreswar Thermal Power Station (BTPS).
Project Structure and Funding
The state power department, acting for the West Bengal State Electricity Distribution Co Ltd (WBSEDCL), has structured the projects on a design, build, finance, own, and operate (DBFOO) basis. While the government will provide the land—identified within the existing premises of the West Bengal Power Development Corporation Ltd (WBPDCL)—the selected private developers will handle the investment, construction, and operational management.
Power Purchase Agreement
The entire generation from these projects will be supplied to WBSEDCL, a senior official confirmed. The lowest bidder will be selected based on the tariff offered, and a formal power purchase agreement (PPA) will be signed accordingly.
Investment and Employment Impact
Officials estimate a cumulative investment exceeding Rs 22,000 crore over the next four to five years, based on industry benchmarks of approximately Rs 10 crore per megawatt for supercritical technology. Beyond power security, these projects are expected to drive significant local employment during both the construction and operational phases.
Strategic Policy Shift
This initiative reflects a strategic policy shift: the state government is increasingly moving away from direct funding for large infrastructure projects exceeding Rs 150 crore. By utilizing the TBCB route, the state reduces its immediate capital burden while leveraging private investment and competitive market pricing for electricity procurement.
Precedent from JSW Energy Project
This model follows the template established by JSW Energy's ongoing 1600 MW project at Salboni. That Rs 16,000 crore venture is Bengal's first TBCB project; once commercial generation commences in 2030, the entire output will be sold to WBSEDCL at a discovered rate of Rs 5.45 per unit.
