

It is leant from reliable sources that the proposed norms provide for single bidding parameter of “fixed charge”, which includes capital costs in awarding Case I projects. At present, such projects are awarded to developers through bidding after taking into account two key aspects — non-escalable (fixed) and escalable (indexed) components. The escalable or variable costs are mostly related to fuel charges. If the new norms are adopted it would help the developers protect themselves from the fluctuation in fuel prices which of late have become volatile.


