5.3 5.4 The tariff for the capacity will be determined by the SERC. However, 15% of power, other than the long term PPA allowed under Para 5.7.1 of the National Electricity Policy, will not be included in the 35% of electricity to be procured by the State Distribution Licensee. Tariffs for all new power generation and transmission projects owned or controlled by the Central Government shall continue to be determined on the basis of competitive bidding in accordance with the Tariff Policy notified on 6th January, 2006, unless otherwise prescribed by the Central Government on a case to case basis. not be specified. In addition, intra-state transmission projects costing more than a threshold limit, to be decided by the SERC, will be developed by the state government through a competitive bidding process. The Central Electricity Regulatory Commission, in consultation with the Central Electricity Authority and other stakeholders, shall, within six months, frame regulations for determination of tariff for electricity generation from projects using coal washery rejects. These regulations will also be followed by the State Electricity Regulatory Commissions. Provided that Central/State PSU, Government company and company other than Government company, in which the shareholding of a company other than a Government company, either directly or through any of its subsidiaries or affiliated company, shall not exceed 9606 of the initial share capital. tashari 5.5 5.6 Procurement of electricity from reject based projects can be done under section 62 of the Act. The developer of a hydro power project including Pumped Storage Plant (PSP) shall have the option to fix the tariff by the Appropriate Commission on the basis of performance based cost of service regulations for power sold through Long Term Power Purchase Agreements (PPAs), if the following: (a) The Appropriate Commission is satisfied that the project site has been allotted by the concerned State Government after adopting a transparent two tier process. Phase I Pre-qualification based on parameters such as financial capability, past experience in developing similar sized infrastructure projects, past track record of timely and estimated cost completion of projects, ability to meet turnover and performance guarantees, etc. must have to. In the second phase, bids based on only one aggregate quantifying parameter as the percentage of free power plus free electricity as notified by the Central Government, equity participation provided to the State Government or such other parameter as may be notified by the Central