Reliance Power set to clinch Andhra project
Reliance Power is set to bag the 4,000 MW Krishnapatnam ultra mega power project (UMPP) after emerging as the lowest bidder.
By TNN |
NEW DELHI: Reliance Power is set to bag the 4,000 MW Krishnapatnam ultra mega power project (UMPP) after emerging as the lowest bidder. The Anil Dhirubhai Ambani Group Company outbid Larsen & Toubro (L&T) and Sterlite Industries for the Andhra Pradesh-based Rs 16,000-crore project.
Reliance Power quoted a tariff of Rs 2.33 per unit for 25 years against L&T’s Rs 2.68 per unit bid. Sterlite quoted Rs 4.18 per unit, official sources said. The financial bids for the imported coal-based project were opened by Power Finance Corporation (PFC) on Thursday. Reliance, L&T and Sterlite were the three firms in the fray.
Reliance Power has already bagged the Sasan ultra mega power plant (UMPP) in Madhya Pradesh for a tariff of Rs 1.196 per unit. That project will also require an investment of over Rs 16,000 crore. The Rs 12,000-crore IPO for which it has filed the draft prospectus will help the company here.
The Krishnapatnam project, incidentally, saw the lowest turnout of bidders for an UMPP yet. The two projects that have been awarded—Mundra in Gujarat and Madhya Pradesh’s Sasan—received six and nine bids respectively.
The delay in finalising the project was one of the important reasons for waning investor interest in Krishnapatnam. While PFC completed the request for qualification (RFQ) process early this year, the bids could not be invited with repeated postponement of dates. The Sasan row and subsequent changes in bidding norms also played a part.
Reliance Power quoted a tariff of Rs 2.33 per unit for 25 years against L&T’s Rs 2.68 per unit bid. Sterlite quoted Rs 4.18 per unit, official sources said. The financial bids for the imported coal-based project were opened by Power Finance Corporation (PFC) on Thursday. Reliance, L&T and Sterlite were the three firms in the fray.
Reliance Power has already bagged the Sasan ultra mega power plant (UMPP) in Madhya Pradesh for a tariff of Rs 1.196 per unit. That project will also require an investment of over Rs 16,000 crore. The Rs 12,000-crore IPO for which it has filed the draft prospectus will help the company here.
The Krishnapatnam project, incidentally, saw the lowest turnout of bidders for an UMPP yet. The two projects that have been awarded—Mundra in Gujarat and Madhya Pradesh’s Sasan—received six and nine bids respectively.
The delay in finalising the project was one of the important reasons for waning investor interest in Krishnapatnam. While PFC completed the request for qualification (RFQ) process early this year, the bids could not be invited with repeated postponement of dates. The Sasan row and subsequent changes in bidding norms also played a part.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
