Power Grid wins Rs 6,000 cr Gadarwara Project in MP

Other bidders were Essel Infra, Adani Power and Sterlite Grid

State-owned transmission major Power Grid Corporation of India won the Rs 6,000-crore Gadarwara A & B project in Madhya Pradesh, said official sources.

The other bidders were Adani Power, Essel Infra and Sterlite Grid. Bidders had submitted two technical and two financial bids by February 19. These were opened on Saturday.

Earlier, there were 11 players in the fray with two European firms as well. Only four companies, including Power Grid, submitted bids. Power Grid won by submitting the lowest bid — 25 per cent lower than the average of bids made by the other three bidders. (See chart)

The bids were called by Rural Electrification Corporation, a wholly owned subsidiary of the ministry of power for the Gadarwara transmission project. The project would evacuate the power generated from the upcoming 1600 MW thermal power project of NTPC in Gadarwara, Madhya Pradesh.

Currently, Power Grid has an order book of more than Rs 1.3 lakh crore of central- and state-funded projects.

For the 12th Plan, PowerGrid’s target of capital expenditure is Rs 1 lakh crore out of which capital expenditure of Rs 43,195 crore has already been made in the first two years of the 12th Plan period (Rs 23,158 crore in 2013-14 and Rs 20,037 in 2012-13).

Gadarwara A

 

Bidders Levellised Tariff  (Rs Million) PGCIL 2,901 Sterlite Grid 3,294 Adani  3,773 Essel 3,960

Gadarwara B

 

Bidders Levellised Tariff  (Rs Million) PGCIL 2568 Sterlite Grid 3087 Essel 3324 Adani  3428     Source: government sources