NTPC tender for procurement of 2.19 lakh tons of biomass pellets

India’s power giant NTPC has issued a tender under which it will be procuring 219,000 tons of non-torrefied biomass pellets for its coal-fired thermal power plant in Dadri, Uttar Pradesh.

As per the NTPC tender notification, the last date for bid submission has been kept January 28, 2025, with bids set to be opened on the same day. An Earnest Money Deposit (EMD) of Rs 10 lakhs is required, though micro and small enterprise (MSE) manufacturers with Udyam registration are exempt from EMD.

The successful bidders will be responsible for the complete supply chain, including the loading, transportation, and delivery of agro-residue-based biomass pellets to the NTPC Dadri power station. The pellets must be delivered loose-filled in covered, waterproof vehicles to ensure protection from weather conditions and contamination. NTPC said that additionally, successful bidders will bear the costs associated with unpacking, unloading, and any potential demurrage charges. The supply contract will extend for 365 days from the date the tender is awarded.

The successful bidders include pellet manufacturers or traders aged 21 or older. They may be Indian individuals, companies, sole proprietorships, partnerships, limited liability partnerships, consortiums, or cooperative societies registered in India. Non-resident Indians and multinational companies with registered offices in India may also participate.

NTPC notification mentioned that biomass pellets must consist of agro-residue, with at least 50% paddy residue. Each pellet should be cylindrical, with a maximum diameter of 25 mm and length of 35 mm. The gross calorific value should range between 2,800 kcal/kg and 3,400 kcal/kg. Enterprises with validated Udyam registration will receive purchase preference, said NTPC.

In May 2023, the Ministry of Power mandated by the way of policy push that all coal-based thermal power plants equipped with bowl mills must annually co-fire a 5% blend of biomass pellets derived from agro-residue.