Komatsu, Terex leading race for R-Power order

Japanese equipment maker Komatsu and US-based Terex Corp are learnt to be in the final lap for winning a Rs400 crore order from Reliance Power (R-Power) for supply of mining trucks for its upcoming Sasan power project.

Sources said the two suppliers have seen off competition from China-based Xiangtan Electric Manufacturing Corp, US major Caterpillar and the Belarusian firm BelAZ.
“Negotiations for delivery of 240 tonne trucks are in the final stages and we will take only a few more days,” an R-Power official said.

The power utility has already finalised orders for its draglines and electric shovels. The latest order is the largest in the Indian mining industry in many years and comes close on the heels of Hindustan Zinc’s recent order on Komatsu valued at about $45-50 million (Rs230 crore) for 21 of the 240-tonne trucks.

R-Power’s Sasan power project is one the four ultra mega power projects allotted by the government with a peak capacity of producing 4,000 mw of power. The company announced financial closure for the Rs19,400 crore project in April this year.

The first phase of the project, which includes two units of 660 mw each, is likely to be commissioned by the end of the 11th Plan (2012).

The project will need coal linkage of 20 million tonnes per annum, which will be sourced from the coal blocks of Moher, Moher-Amlori Extension.

The project witnessed a legal battle when the Tata group objected to the use of surplus coal allocated for Sasan for the Anil Ambani-led company’s other power projects. The Delhi High Court dismissed the petition filed by the Tatas contesting the decision of an Empowered Group of Ministers to allow the company to use the coal in other projects.
The Sasan project is being funded on a 75:25 debt-equity ratio, with most of the debt coming from a consortium of 12 state-owned banks and lenders led by the State Bank of India. Of the total debt component of Rs14,550 crore, more than 85% is being funded by state-owned financial institutions. The overseas subsidiary of India Infrastructure Finance is contributing about Rs2,500 crore.