GMR ahead in race for hydel power plant in HP

NEW DELHI: Infrastructure firm GMR Energy has emerged as the front-runner to bag a 180 MW hydroelectric project in Himachal Pradesh, outsmarting rivals like Reliance Energy and engineering giant L&T.

GMR quoted the highest upfront premium to be paid to Himachal government for the Holi Bajoli project on river Ravi in Chamba district. The financial bids for the run-of-the- river project were opened in Shimla on Thursday, industry sources said.

REL, Larsen & Toubro, Lanco, Jaypee and Torrent-Gammon consortium were among the dozen other companies that had submitted financial bids, they said.

The bids were invited by Himachal Pradesh State Electricity Board, they said, adding that a formal decision is expected within a couple of weeks. Sources said HPSEB also opened bids for three other projects today, with a total capacity of nearly 500 MW.

The project would require an investment of more than Rs 1,000 crore and is likely to start generating electricity during 2013-14. If GMR bags this project, it would be its third hydroelectric plant. The company is already working on one hydel project each in Uttarakhand and Arunachal Pradesh.

The company has proposed to give 12 per cent free power to the state for the first 15 years of operation, 18 per cent in the next 15 years and 30 per cent in the subsequent 10 years.