Tariff-based bidding for Bawana plant gets nod

New Delhi, Jan 1 | Updated: Jan 2 2006, 05:30am hrs
The Delhi government has opted for a tariff-based bidding for the 1,000 mw Bawana power plant. This plant, which will run on natural gas, is expected to be ready before the Commonwealth Games in 2010.

The government will allow private players to set up the plant and is likely to follow the build-operate-transfer (BOT) model. The government has opted for the private firms route over two other options joint venture and government control since they were likely to put an additional burden on the state exchequer by investing in generation of power.

In the bidding process, the company which quotes the lowest tariff per 1 mw of power, will get the contract to set up the unit in Bawana. Besides the BOT model, we are also looking at the feasibility of BOO model, said Arun Goyal, chairman and managing director, Delhi Transco Ltd (DTL).

The project will cost about Rs 3,560 crore and will not have any government stake. The government will also provide land for setting up the plant, at suitable rates.

Expecting a peak power demand of 5,075 mw by 2009-2010, the government has decided to set up this plant so as to meet the growing power needs. To bolster the gas supply in the Capital for the upcoming gas-based generation units, the Delhi government has also sought help from the ministry of petroleum and natural gas.

Delhi chief minister Sheila Dikshit told FE, We have written to Mr Mani Shankar Aiyar, asking him to augment the gas supply to our existing generating units and also for the upcoming ones like Bawana and Dadri.