RIL may bid for UMPPs in Chhattisgarh, Orissa

After telecom, Mukesh Ambani-led Reliance Industries (RIL) is looking to enter thermal power projects and may bid for the ultra mega power projects (UMPPs) in Chhattisgarh and Orissa.

"The company is likely to bid for the two UMPPs for which the government has issued RFQs (Request for Qualification)," a source close to the development said.

However, RIL spokesperson declined to comment.

The government has invited bids for the 4,000 Mw Sarguja UMPP in Chattisgarh by July 5 and a similar project at Bedabahal in Orissa by July 30.

RIL and Reliance ADA Group, led by his brother Anil Ambani, on May 23 agreed to cancel all existing non-compete pacts which the groups had signed in 2006. This allows them to enter areas of business hitherto barred for each other.

After the Supreme Court verdict on years of long, bitter gas dispute, both RIL and ADAG also announced to expeditiously negotiate gas deal in accordance with the Supreme Court order.

Mukesh Ambani-led RIL has already acquired control of Infotel, an internet service provider that has won pan-India broadband licence in the recently concluded auction.

The UMPP bids may mark Mukesh's entry into power sector.

The government has already allotted four ultra mega power projects of 4,000 MW each in the states of Madhya Pradesh (Sasan), Andhra Pradesh (Krishnapatnam), Jharkhand (Tilaiya) and Gujarat (Mundra).

Three of the four allotted projects have been bagged by Reliance Power -- Sasan, Krishnapatnam and Tilaiya and the one at Mundra is being developed by Tata Power.