Lanco Infratech Ltd, the diversified infrastructure company, has emerged as the lowest bidder for the much-delayed 1,600 mw Dhopave coastal power plant.
Lanco Infratech Ltd, the diversified infrastructure company, has emerged as the lowest bidder for the much-delayed 1,600 mw Dhopave coastal power plant.
This engenders some hope on the actual setting up of the plant, which has been hanging fire for long.
The bidding process for the power plant started way back in November 2006 and a shortlist of six major private power players was released in August 2007.
Apart from Lanco, the shortlist comprised GMR Energy, Torrent Power, Jindal Power, Tata Power and Reliance Power.
Pradeep Lenka, head, power projects, Lanco Infratech, said the company expects to get the letter of intent in a week after which it will take over the land and a special purpose vehicle will be formed for the project.
“Once we pay the bank guarantee, we have to go ahead with financial closure and fuel linkage,” he said. This process is expected to take close to three months.
He said in current market conditions, fund-raising has become a tough task, especially because there are no foreign lenders available.
“We will have to look for domestic banks for raising capital for the plant and though we would like to go for a debt equity ration of 75:30,” he said.
Lenka said the total cost of setting up the power plant will be approximately Rs 8,500 crore and will include construction of a jetty, expected to cost up to Rs 500 crore. The jetty will be used to bring in imported coal for the power plant.
Though Lanco will have a target of 54 months to complete the power plant, Lenka said the company would like to complete it within 48 months from the zero date.
The 1600 mw imported Dhopave imported coal-based thermal power station is located in the Ratnagiri district in Konkan region of Maharashtra.
The project is strategically located and boasts of proximity to the petrochemical and the fertiliser industry.
Lanco will have to develop the project on build, own and operate basis from whom state generation company —- MahaGenco will purchase the power for the procurer.
The procurer in this case is the Maharashtra State Electricity Distribution Company Ltd (MahaVitaran). MahaGenco officials could not be contacted for details.
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