The competition between Bharat Heavy Electricals Limited-Alstom joint venture and Toshiba of Japan to bag the EPC (engineering, procurement, construction) contract for the 1,600-Mw super-critical thermal power project at Krishnapatnam is expected to substantially lower the project cost, benefiting the Andhra Pradesh Power Generation Corporation (APGenco). The state-owned corporation is developing the plant. | |
| "Though we have indicated a benchmark price in the bid documents, we are going to get a better bargain out of the stiff competition between the two principal contenders "" BHEL and France's Alstom combine, and Toshiba," Ajay Jain, managing director of APGenco, told Business Standard. |
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| APGenco has set up a separate special purpose vehicle (SPV), AP Power Development Company, for the purpose. |
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| The Krishnapatnam project is the first super-critical power project with each unit of 800 Mw capacity being developed by any state-owned power company in the country. NTPC, which is also going for super-critical technology, has so far opted for a maximum size of 660 Mw unit. |
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| Jain said the bids would be finalised in August-September this year, at least a month before the developer for the Krishnapatnam Ultra Mega Power Project (UMPP) is selected. The Krishnapatnam UMPP is being offered for private development by the Power Finance Corporation. |
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| Meanwhile, AP Power Development Company has received all the necessary clearances besides acquiring 1,200 acres for the proposed project, according to Jain. |
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