Big guns in race for Punjab power plant

The shortlisted companies will have to submit requests for proposal (RFP) by November 7. The other companies that have qualified for the project are Tata Power, Essar Power, Indiabulls Power Project, the consortium of Jindal Steel Works and IDFC, etc.

Thirteen companies including Reliance Power, Tata Power, Larsen and Toubro, and Essar submitted requests for qualification (RFQ) bids last month.

Other firms that have shown interest in the project include Lanco Infratech, Bhilwara Energy, Indiabulls power project, Sterlite, the consortium of JSW and IDFC, and a consortium of Spanish companies Union Fenosa International and Isolux Corsen with Emco.

The project will be awarded to a developer selected on the basis of tariff-based competitive bidding in accordance with government of India guidelines and will run on a build-own-operate basis.

The proposed power project will be coal-based and will see an investment of Rs 6,000 crore.

The Punjab State Electricity Board (PSEB) issued an RFQ document for selecting developers in January and a bidder conference was held in Chandigarh on February 19.

For the development of the Rajpura power projects and to enhance investor confidence, reduce risk perception and elicit good response through competitive bidding, special purpose vehicles (SPVs) have been set up, namely Nabha Power Ltd, as wholly owned companies of the PSEB to facilitate tie-ups on inputs, linkages and clearances.

The company will undertake preliminary studies and obtain necessary clearances and tie-ups for coal, water, land, power sale arrangements with the PSEB, the sole procurer from these projects, before award of the projects to successful bidders by way of selection of developers through tariff based Competitive Bidding.

The SPVs shall also obtain necessary environmental clearances. Also, for the proposed thermal power plant the state government has identified 1,085 acres, for which the process of acquisition has been initiated.

Talking to Business Standard, Nabha Power Ltd Director K B Kansal said, "The shortlisted companies will have to submit the RFP document by November 7."

Punjab's installed capacity at the end of the 10th Plan is 6,088 Mw, including the generation by the Bhakra-Beas Management Board (BBMB) and various central sector projects and the state government plans to add another 4,000 Mw in the next five years.