Fresh Round Of Bidding For Bidadi Plant
The Karnataka Power Corporation Ltd (KPCL) will seek fresh bids for the engineering, procurement construction contract for the Bidadi power project following the increase in the project's capacity to 400 mw.
The capacity of the naphtha-based project was raised after the petroleum ministry increased its allocation for Karnataka.
Although the capacity has been raised to 400 mw, the promoters may initially go in for only 300 mw as most clearances have been received for this capacity. Subsequently, the project cost is also expected to shoot up though KPCL is planning to peg it down to around Rs 1,000 crore.
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As a result, L&T, BHEL and ABB, which had bid earlier, will now have to bid again though most of the project parameters remain the same, a top Karnataka government official told Business Standard.
The official said these bidders would now need to effect changes in cost before resubmitting the bids.
The contract is likely to be awarded before October-end, he said. But KPCL expects more bidders for the engineering, procurement construction contract because of an increase in capacity and better conditions prevailing in the market.
The Bidadi project will supply power to the $600 million Toyota-Kirloskar's joint venture for multi-purpose vehicles, several Japanese auto ancillary units and power-strapped Bangalore.
The project has a debt-equity ratio of 70:30 with the US-based Unocal holding 25 per cent equity and KPCL 26 per cent. Talks are under way for raising the debt part of the investment.
"Infrastructure funds of major financial institutions are keen to invest in our project," the official said.
The tender for the engineering, procurement construction contract when the project capacity was 200 mw was floated on December 22, 1997 and bids were opened on July 1, 1998. But before any decision on awarding the contract could be taken the project capacity was increased.
The promoters had signed up with BPCL for supplying fuel for the project.
The naphtha-based project received clearance for the Central Electricity Authority in March 1996 for setting up a 300 mw power plant but because of change in the policy on naptha-based projects, it was scaled down to 100 mw. But subsequently, the power project's capacity was raised to 200 mw after the centre liberalised policy on supply of naphtha.
The promoters had tied up with Bangalore Water Supply and Sewerage Board for supply of water. But the promoters may now need to seek increase in water supply as well. Around 170 acres of land has been acquired at a cost of Rs 10.40 crore.