Selling Pellets to Power Plants — NTPC, DVC, WBPDCL Tenders & SAMARTH/GeM Registration

The biomass pellet business’s greatest strength — the buyer is compelled by law. Under the Ministry of Power’s SAMARTH mission rules, every coal-fired thermal power plant in the country must co-fire 5% (rising in steps to 10%) biomass pellets with its coal. Consequently, bodies like NTPC, DVC and WBPDCL issue tenders for lakhs of tonnes of pellets every year. But finding the selling route is the most misunderstood part of this business — this guide walks the whole pipeline step by step.

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1. First understand the map: who buys, where

Buyers in West Bengal and neighbouring states:

Buyer	Plants	Location
WBPDCL	Kolaghat, Bakreswar, Sagardighi, Santaldih	Purba Medinipur, Birbhum, Murshidabad, Purulia
DVC	Mejia, Durgapur, Panchet etc.	The Bankura-Bardhaman-Jharkhand belt
NTPC	Farakka (Murshidabad) and neighbouring states	Pan-India tenders
Other state/private	Boilers, tea gardens, cement, paper mills	Local market

Know the truth: under SAMARTH, the full list of these plants with names and tender links is public at samarth.powermin.gov.in. And the reality is — WBPDCL and DVC have repeatedly failed to meet their co-firing targets because there aren’t enough existing suppliers to bid on the tenders. This supply gap is the real opportunity for West Bengal entrepreneurs — but to turn opportunity into work you’ll need the route below.

2. The three doors of registration

(a) SAMARTH portal

On this Ministry of Power portal, pellet suppliers can register themselves — declaring plant capacity, location and product type (non-torrefied/torrefied). The plants search for suppliers here. Not mandatory, but being in a searchable list is a free advertisement.

(b) GeM (Government e-Marketplace)

Register as a supplier at gem.gov.in — pellet tenders also appear in GeM’s bids and direct purchases (many of NTPC’s big purchases are through GeM). You’ll need: Udyam registration, PAN-GST, bank details. Our Udyam registration guide will help at this step.

(c) Company-specific tender portals

• NTPC: vendor registration on its own e-procurement portal (via epsobjects/teps)
• DVC: tender notifications on dvc.gov.in
• WBPDCL: EOIs (Expressions of Interest) and NITs appear regularly in the tender section of wbpdcl.co.in — as early as 2022 it issued EOIs for pellet co-firing at two power stations

In every case the core papers are: Udyam/GST, proof of plant ownership and capacity, the product’s lab-test report (GCV, moisture, ash), EMD and past supply records (an extra edge if you have them).

3. The bid math: how to price

Before quoting in a tender, add up four heads:

1. Production cost: roughly ₹2,700–4,200/tonne (cost-calculation guide)
2. Transport: truck hire from plant to power plant — usually ₹1.5–2.5 per tonne per km; 200 km means ₹300–500 extra per tonne. This is why building the plant within a 150–200 km radius of the power plant is the biggest competitive advantage.
3. Tender-condition costs: EMD, performance bank guarantee (PBG), working capital for a full month’s delayed payment
4. Margin: whatever remains at the end is your quote — quote high and you lose, quote too low and you sink delivering

The golden rule of bidding: tenders usually carry annual/long-term supply quotas (one NTPC tender alone was 2 lakh+ tonnes). Win a quota bigger than your plant’s real annual output (in the 5,000–20,000-tonne class) and fail to deliver — you face both penalties and blacklisting. Winning a small quota > drowning in a big quota.

4. Alternative selling routes: the local market

Instead of waiting on thermal tenders, also consider these buyers:

• Tea gardens and boiler industries (Dooars, Terai): a shift to pellets is under way to cut fuel costs
• Hotels-dhabas, bakeries, and parlour networks like Punjab’s: small but cash payments
• Local sales as briquettes: the pellet machinery can also make briquettes — local briquette prices are lower but transport distances are shorter too

Advantages: cash, small lots, no tender conditions. Blending this base selling with thermal tenders is the safest business model.

5. Step by step: up to the first tender

1. Commission the plant and validate quality: lab reports on the sample (GCV about 3,500–4,000 kcal/kg, moisture ≤10–12%, ash within limits) — this is the entry ticket.
2. Registration: SAMARTH + GeM + the relevant company’s vendor portal — do all three.
3. Tender monitoring: check the tender pages of the plants on the SAMARTH list, GeM bids and the WBPDCL/DVC portals once a week.
4. Start small: even at low profit on the first 2–3 supplies, build a supply record — in the next tender that record is vendor credibility.
5. Bid after computing distance: submit your quote only after calculating transport cost — winning cheap on a distant plant still means losing on delivery.