UP invites bids for 1,980-Mw Bara project for third time

The Uttar Pradesh government has sought bids afresh for the 1,980-Mw coal-based power project at Bara in Allahabad district. Bids have to be submitted by September 1.

This is the second project for which the state has called fresh bids, the other being the 1,320-Mw project at Karchhana in the same district, for which bids have to be submitted by August 21.

The two projects have been mired in controversies for some time now, with the latest invitation for bids being the third time for the two projects.

Reliance Power had emerged the lowest bidder for the two projects the last time bids were opened. The company had agreed to supply power at Rs 2.64 per unit for the Bara project and Rs 2.60 for the Karchhana plant.

On the first occasion, Lanco Infratech had emerged the lowest bidder for the two projects but bids were rejected as the government said the rates offered were more than what the company was charging for its Anpara C project in the Sonebhadra district of the state.

Hence, bids were invited for the second time, with Reliance Power emerging the lowest bidder. Lanco had quoted Rs 2.88 a unit for Bara and Rs 2.83 for Karchhana in the second round.

However, Reliance Power’s bids were rejected as the government felt rates offered by the company were not much lower than what Lanco’s original bid.

Both the projects are based on super critical technology, which uses less fuel, yields more power output and operates under very high pressure and temperature compared with conventional technology.

The nod from the Ministry of Forest and Environment for the two projects is awaited.

The state government has decided to allow selected developers to set up one additional unit at Karchhana and two additional units at Bara.

While the developers will have to sell the entire capacity from the main plants to the five state-owned distribution companies, they will be able to sell 70-80 per cent of power from the additional units in the open market.

Coal will be ferried from Singrauli situated at a distance of about 600 km from the two power plants.

The special purpose vehicles (SPVs) set up for obtaining clearances for the two projects will acquire 2,100 acres in Bara and 990 acres in Karchhana.

Pragyaraj Power Generation Company Ltd and Sangam Power Generation Company Ltd are the respective SPVs for Bara and Karchhana projects.

Pragyaraj Power has invited bids for setting up a 765-KV transmission line from Bara to the substation at Mainpuri for the evacuation of power from the project.