R-Power, Spain's Isolux bid for Allahabad projects

Top names in the power and infrastructure sector, including Reliance Power, Lanco Kondapalli and Spanish firm Isolux Corsan, have evinced interest in setting up two power plants in Uttar Pradesh’s Allahabad district.

The state government wants to set up two power plants at Bara and Karchhna in Allahabad with a cumulative capacity of 3,300 mw. Sixteen companies submitted a request-for-qualification (RFQ) for Bara (nine bids) and Karchhna (14 bids).

NTPC, Indiabulls, JP Power Ventures, Lanco, GVK, L&T, Adani Power, Reliance and Isolux have bid for the Bara project. Karchhna was bid for by JSW Energy, L&T, KSK Energy, Indiabulls, Reliance, Lanco, GVK, Adhunik Metallics, Adani, Bhushan Steels, HDIL Energy, Videocon, CESC and JP.

Three units and two units at Bara (1,980 MW) and Karchhna (1,320 MW), respectively, have been proposed to be set up. Each unit will have a capacity of 660 MW.

This is the third time that the state government has resorted to inviting bids for the two projects as there was only a lukewarm response from companies earlier and also since the tariff quoted was high.

“The response from the private sector has been very encouraging this time,” UP Power Corporation (UPPCL) Managing Director Avnish Awasthi told Business Standard.

Meanwhile, a committee will evaluate these bids and only qualifying companies will be eligible to submit request for proposal (RFP) documents containing technical and financial detail.

On July 19, the state energy task force (ETF) recommended an invitation of fresh bids, since the lowest bid, which came from Reliance, was found to be quite high. Later, the same was ratified by the state Cabinet.