4 power cos line up for Tilaiya project

Written by Economy Bureau | Mumbai | Updated: Dec 30 2008, 06:04am hrs
Indias largest power generator NTPC and three private sector companiesReliance Power, Sterlite, Lanco Infratechare in the race for Rs 18,000-crore ultra mega power project at Tilaiya in Jharkhand. The companies on Monday filed request for proposal (RFP) for the same project to the state-run Power Finance Corporation (PFC), which is a nodal agency for the implementation of UMPP in the country.

PFC sources told FE, In all 11 bidders were qualified for the Tilaiya UMPP. Apart from the above given five, the other qualified bidders included Essar Power, AES, L&T, GVK, GMR and Torrent. The power ministry and PFC had given three extensions for the submission of RFP by these qualified bidders in view of the ongoing slowdown and liquidity crunch. The time was needed to cough up Rs 120 crore towards bond guarantee. Under usual circumstances, these bidders were expected to submit their RFP in September but it was postponed on their request.

Sources said apart from the delays in bidding, the Tilaiya project had also to face some delays over identification of site, getting water source and obtaining other regulatory clearances. The project would have a debt-equity ratio of 70:30.

Tilaiya is the fourth UMPP as Sasan has been awarded to Reliance Power, Mundra to Tata Power and Krishnapatnam also to Reliance Power. In terms of tariff to be charged from the consumers, according to the sources, the lowest bid for the project is expected to be over Rs 1.196 per unit (Reliance Powers bid for Sasan) and less than Rs 2 per unit.