Sterlite bid lowest for Punjab project

Written by Sanjay Jog | Mumbai, Jul 2 | Updated: Jul 4 2008, 04:59am hrs
Sterlite Industries has emerged as lowest bidder of the international competitive bid invited by Talwandi Sabo Power Ltd, a special purpose vehicle (SPV) floated by Punjab State Electricity Board (PSEB) to develop 1,980 mw Talwandi Sabo thermal power plant at Banwala in district Mansa of Punjab. The other qualified companies includes Larsen & Turbo, Reliance Power, Tata Power Company, Nagarjuna Construction, Jindal Steel and Power, GVK Infrastructure, Indiabulls and Lanco.

Sterlited had quoted the lowest tariff of Rs 2.84 per unit to emerge as L-1 bidder, whereas the tariff quoted by other qualifiers are Rs 2.88 per unit by Reliance Power Ltd, Rs 2.995 per unit by Lanco and Rs 3.15 per unit by Indiabulls. Informed sources told FE that Talwandi Sabo Power Limited will soon be transferred to the successful bidder. Talwandi Sabo Thermal Power Project is planned for installed capacity of 1980 MW. The project will be awarded to Sterlite on build, own and operate (BOO) basis, through tariff-based international competitive bidding (ICB). Power Finance Corporation has been appointed as the consultant for the project.

Sources recalled that Sterlite Energy Ltd, a subsidiary of Sterlite Industries has already drawn an ambitious plan to develop 10,000 MW thermal power projects over the next five years. The company is considering financing options for these projects, including equity and debt. The company is developing a 2,400 MW power plant at Jharsuguda, Orissa, at an estimated cost of Rs 7,600 crore. A 1,200 MW power plant would be set up at Korba by Bharat Aluminium Company Ltd (Balco), a Sterlite subsidiary. Sterlite Energy is considering 6,000 MW projects as Phase-2 of Jharsuguda ( 2000 MW) and of Korba ( 4,000MW).

According to the strategy for Sterlite Energy posted in its corporate website, Sterlite Industries intends to participate in projects relating to the generation of coal-based thermal power through Sterlite Energy.