Reliance Power Ltd is all set to bag its second ultra mega power project (UMPP) — this time at Krishnapatnam in Andhra Pradesh.
It had earlier won the Sasan ultra mega power project
NEW DELHI: Reliance Power Ltd is all set to bag its second ultra mega power project (UMPP) — this time at Krishnapatnam in Andhra Pradesh.
It had recently bagged the Sasan UMPP, in Madhya Pradesh, after a second attempt at the bidding.
Sources said that Reliance Power quoted Rs 2.33 a unit levelised tariff for the Krishnapatnam UMPP, which would be based on imported coal.
L&T, which was close behind Reliance Power, quoted a marginally higher tariff of Rs 2.68 a unit. The third bidder, Sterlite Industries, was way higher at Rs 4.18.
The project will be awarded to the one quoting the lowest tariff, in this case Reliance Power.
A five-member evaluation committee, led by Delhi Metro Corporation managing director E Sreedharan, opened the bids for the project on Thursday.
When asked for the results, Power Finance Corporation (PFC) chairman VK Garg did not give the details.
“The evaluation is still on. We will announce the results, once the letter of intent (LoI) is issued,” he said.
Another PFC executive added that the LoI was likely to be issued by November-end.
PFC is the nodal agency for carrying out the bidding process.
The tariffs of Reliance Power and L&T are in line with the Rs 2.26 a unit quoted by Tata Power for the Mundra UMPP, which will also be a coastal power project based on imported coal.
When asked whether Rs 2.33 a unit was a realistic bid, given that coal prices have increased dramatically, an analyst pointed out that since the time bidding for Mundra closed, the rupee has appreciated 10%.
When that’s taken into account, the difference in tariff for the two projects is around 22 paise.
L&T, Sterlite and Reliance Power were the only three companies that submitted bids on October 24, 2007, out of the nine pre-qualified bidders for the project.
Reliance Power bagged the Mundra project, following the disqualification of the Lanco-Globeleq combine, but lost out due to alleged misrepresentation of facts relating to Globeleq’s financial and technical capabilities.
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