28 cos keen to supply power to GUVNL

Around 28 companies from across the country have evinced interest in the bidding process for supply of 3,000 Mw to Gujarat Urja Vikas Nigam Ltd (GUVNL).

These include power companies such as Reliance Power, Adani Power, Tata Power, Essar Power, PTC India, JSW Energy, Jindal Power, Welspun Power, Emco Energy and KSK Energy’s subsidiary Vardha Power.

Apart from these, many other players are also gearing up to power GUVNL. These include Aryan Coal, Sterling Energy, IL&FS, North Chennai Power Company, Tuff Energy, Shapoorji Pallonji, Indiabulls Power, KVK Nilachal, North Chennai Power Company, Chiripal Energy Pipavav Energy and RKM Power.

“Of the total 28, many power companies have come forward to participate in the process for the first time. This will further intensify the competition,” said sources in GUVNL.

Last month, GUVNL invited a proposal from power companies to procure 3000 Mw on a long-term basis. The state-run company also has the option of raising or lowering the specified limit by 20 per cent based on the response from the supplier firms. This means the supply of power to GUVNL will range between 2,400 Mw and 3,600 Mw. The last date for registering participation was July 21. The shortlisted power companies will be required to submit their request for proposal by September 7, 2009.

This is for the third time GUVNL has invited players for competitive bidding. Earlier in 2008-09, GUVNL had scrapped the second round of bids in the wake of shortlisted companies quoting higher prices for supply of power.

Adani Power, Reliance Energy, Essar Power and PTC had submitted financial bids during the second round. GUVNL was of the view that the price at which power was to be supplied in the second round was higher than the price offered in the first round of power purchase under competitive bidding.

The first round of power purchase had set a benchmark of Rs 2.89 per unit but prices in the second round were in the range of Rs 3.25 to Rs 3.50 per unit.