Q2 · UPSC current affairs · 1 October 2026 · News · Green Energy Corridor Phase-III Scheme

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With reference to the terminology associated with the Green Energy Corridor, what does 'Tariff-Based Competitive Bidding' signify?

A A subsidy allocation model based on the capital expenditure incurred by state electricity boards
B An auction system exclusively meant for thermal power plant capacity expansion
C A fixed price mechanism determined solely by the central electricity regulator without developer participation
D A competitive process where developers bid lowest electricity transmission tariffs to win infrastructure projects

Correct answer: (d) A competitive process where developers bid lowest electricity transmission tariffs to win infrastructure projects

Explanation

Option D is correct because Tariff-Based Competitive Bidding refers to a competitive process where developers bid the lowest electricity transmission tariffs to win infrastructure projects. The other options misstate the nature of the tariff bidding mechanism.

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