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| Jaypee trumps Lanco in UP power plant bidding |
| Virendra Singh Rawat / Lucknow Mar 02, 2009, 00:34 IST |
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Jaypee Associates has trumped Lanco in the revised bids for the 1,980-Mw thermal power project at Bara in Allahabad district of Uttar Pradesh.
While the other two bidders — Lanco and Reliance — refused to revise bids, Jaypee reduced its tariff to Rs 3.02 to emerge as the lowest tariff bidder.
The Energy Task Force (ETF) has recommended Jaypee as the preferred company to bag the long-delayed project. The state cabinet is likely to approve the company bid in a day or two, official sources told Business Standard.
Earlier, Lanco was the lowest bidder, quoting Rs 3.09 for supplying power from the proposed project. Jaypee had quoted Rs 3.36 and Reliance Power Rs 3.98. However, the ETF headed by the state chief secretary on Thursday asked the three companies to submit revised lower bids.
Nine companies were originally in the fray for the Bara project — NTPC, Indiabulls, Jaypee, Lanco, GVK, L&T, Adani, Reliance and Isolux. Only Jaypee, Reliance and Lanco filed their financial bids.
Jaypee had already bagged the 1,320-Mw Karchhna power plant in Allahabad quoting lowest tariff of Rs 2.97 per unit, bettering Reliance, Adani and Lanco.
The state government plans to augment its power generation capacity by 10,000 Mw in the current 11th Five-Year Plan. The Bara and Karchhna projects totalling 3,300 Mw constitute a third of the target.
In the first bidding in April 2008, Lanco had pipped Reliance as the lowest bidder. However, the state government sought fresh bids to get lower rates and in subsequent bidding in June, Reliance emerged lowest bidder with Rs 2.64 and Rs 2.60 per unit quoted for Bara and Karchhna, respectively.
Since, Reliance’s tariff was only a paisa lower than the rejected Lanco bids, the ETF on July 19 recommended invitation of fresh bids after promulgating a new energy policy. It allowed the successful bidder to add more units to the projects and sell 80 per cent of the power generated from these units in the open market.
Interestingly, the Jaypee bids for both the projects are almost 38 paise higher than the rejected bids of Lanco and Reliance.
The proposed plants are not located at pithead and the coal would be ferried from Singrauli, situated at a distance of about 600 km. Uttar Pradesh Power Corporation Limited (UPPCL) will acquire about 2,100 acres of barren tract in Bara and 990 acres in Karchhana for the projects.
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