Lanco submits bid for Rajpura power project

Hyderabad-based Lanco Infratech today submitted the financial bid for the 1,200-Mw coal-based Rajpura thermal power project, which is likely to entail an investment of Rs 6,500 crore.

According to sources, Lanco, the sole bidder for the project, has quoted Rs 3.38 per unit as a levelised tariff for 25 years.

According to sources, the ‘bid evaluation committee’ constituted under the supervision of the Punjab State Electricity Regulatory Commission (PSERC) today opened the financial bid and now it would be taken to the Punjab State Electricity Board (PSEB) for evaluation.

They further added that since Lanco Infratech is the sole bidder for the Punjab government’s ambitious project, it is a complex process and will take time.

Earlier, Mumbai-based Sterlite Energy Ltd, a part of Sterlite Industries India Ltd, had been alloted the 2,000-Mw Talwandi Sabo thermal power project by PSEB. Sterlite was awarded the project as it quoted the lowest price bid of Rs 2.86 per unit as levelised tariff for 25 years.

For the Rajpura project, which has seen participation of less than two bidders, there has been a provision of constituting a bid evaluation committee, which consists of three representatives from the state electricity board, one financial expert and two officials from the state government.

According to sources, the exorbitant cost of land in Punjab recently averted a number of investors from setting foot in the state and the Rajpura project is no exception.

PSEB has set up a special purpose vehicle (SPV), Nabha Power Ltd, as its wholly-owned company to facilitate tie-ups of inputs, linkages and clearances for these projects.

The state government has identified 1,085 acres for the Rajpura plant. The coal-based project would be set up on a build-own-and-operate (BOO) basis.