E-Bidding portal and merit app

MERIT app

Question: Which of the following is not correct in context of the ‘merit app’?
(A) Empowerment of Consumer and Interactive Administration
(B) Does not promote economy and efficiency in operation
(C) Proliferation of information regarding purchase of marginal variable cost and source power
(D) Optimizing the operating costs of the electricity
Ans: (b)
Related facts:-

  • On July 5, 2017, Central Electricity, Coal, New and Renewable Energy and Mines Minister of State (Independent Charge) Piyush Goyal launched e-Bidding portal and merit app (Merit Order Dispatch of Electricity for the Rejuvenation of Income and Transparency).
  • E-bidding portal provides e-Bidding solution to States to select Independent Power Producers (IPPs) for procurement of power.
  • The e-bidding portal has been developed by Ministry of Power, along with PFC Consulting Ltd and MSTC Ltd.
  • The app and the web portal would result in optimum utilization of Coal which would save the consumer close to Rs. 20,000 crores in next five years.
  • Benefits of Merit App-
    (1) Empowerment of the Consumer and participative governance
    (2) Transparent information dissemination pertaining to marginal variable cost and source wise purchase of electricity
    (3) Promotes economy and efficiency in operations
    (4) Helps understand the utility portfolio and its complexity
    (5) Optimization of the power procurement costs
    (6) Facilitates renewable integration and handling of the variability and uncertainty of renewables
    (7) Indication of supply side reliability, adequacy, and co
    (8) The flexibility in utilization of domestic coal scheme
  • envisages transferring coal to more efficient IPPs generating stations, leading to lower generation costs and ultimately lesser cost of electricity for the consumers.
  • The Cabinet, on 4th May 2016, approved the proposal for allowing flexibility in utilization of domestic coal amongst power generating stations. Central Electricity Authority (CEA) has issued the methodology for utilization of domestic coal within State/Central generating stations on 8th June 2016, followed by the issuance of a memorandum by the Ministry of Power on 10th June 2016. The methodology for use of transferred coal in Independent Power Producers (IPPs) generating stations was issued by Ministry of Power on 20th February, 2017.

Related Links:-
http://pib.nic.in/newsite/PrintHindiRelease.aspx?relid=65843
http://pib.nic.in/newsite/PrintRelease.aspx?relid=167149