Adani quotes lowest price in GUVNL's power purchase bid

Adani group has emerged as the lowest bidder in bids opened by the state owned Gujarat Urja Vikas Nigam Ltd on Monday. Adani has bid Rs 3.45 kwh while PTC has emerged as the second lowest bidder.

Adani has bid lowest for an undisclosed amount, while Anil Dhirubhai Ambani Group has emerged as the second lowest bidder, said sources close to the development.

"The government may take a month's time to award the contract after proper evaluation," said sources close to the development. The state government had invited bids for 1900 MW of power from power generators. While Adani has submitted a bid for highest capacity of 1,000 MW, Essar Power had submitted for 600 MW, Power Trading Corporation for 200 MW and Reliance Power had submitted bid for 100 MW.

There is a strong possibility that other players might be asked to match Adani's price. It's also possible that the government may buy more power from Adani in case others fail to match the price, sources said.

"If the prices are lowered by the power generators, the government might buy power from all the players since the total power capacity bid by four players together makes it 1900 MW," said sources in the know of the developments.

GUVNL had last month opened the technical bids submitted by power companies to supply power to state electricity company. "Out of the 19 selected companies, Reliance Power, Essar Power, Adani Group and PTC India have sent bids," said sources close to the development.

It may be mentioned here that Gujarat Urja Vikas Nigam Ltd had invited proposals from power generators, traders and companies in August 2007 to supply 2000 mw of power to the state run company on a long term basis through competitive bidding.

However, the process got delayed by more than year due to host of reasons including assembly elections in Gujarat. The final date for submission of bids was once again extended for one month on 15 November.

GUVNL had selected 19 companies as qualified bidders in April this year, which included names such as Reliance Power, Torrent Power, KSK Energy, PTC India, Sanghi Group, JSW of Ratnagiri and Essar Power among others.