Re-bidding of 3,960-MW Tilaiya project likely in mid-February

The re-auctioning of 3,960-MW Tilaiya ultra mega power project (UMPP) is expected in mid-February as 18 power procurers have decided to accept the termination notice for the plant given by Anil Ambani-led Reliance Power.
"The 18 procurers in 10 states have decided to accept the termination notice given by Reliance Power which was implementing the project. We are expecting the re-bidding of the project in mid-February," Principal Secretary Energy Jharkhand S K G Rahate told reporters here.
Rahate was here to attend the MoU-signing ceremony among Jharkhand, JBVNL and the Power Ministry for the state joining UDAY scheme for revival of its power distribution company.

Reliance Power had given the termination notice in April last year for terminating the contract for the Tilaiya UMPP in Jharkhand.
Rahate said, "Now since all the procurers are ready to terminate the contract, they have requested the Power Ministry to start the process of rebidding for the project. I think it will take 4-5 weeks to complete the formalities for terminating the deal."
Reliance Power, in August 2009, had won rights to set up a 3,960-MW power plant at Hazaribagh in Jharkhand after bidding a levellised tariff of Rs 1.77 per unit, but couldn't start work on the project as the state government had not provided the required land even after more than five years.

JIPL, a special purpose vehicle created for implementing the project, had signed PPA with 18 power off-takers in 10 states for 25 years. The project was based on captive coal blocks, for which coal was to be sourced from Kerendari BC coal mine block.

The total land requirement for the project was over 17,000 acres.
On reasons for termination of the contract, Reliance Power had said, "There has been a delay of over 5 years in land acquisition by the state government for the power plant, captive coal blocks and related infrastructure."
The PPA required procurers to hand over land and other clearances by February 2010.

"However, the required land is yet to be made available. Even the forest land in the power station area, for which the stage-II forest clearance was accorded by the central government way back in November 2010, has not been handed over to JIPL till now," the company had said in its statement.
"As regards the coal block, the land acquisition process is yet to get initiated, for which the application was submitted way back in February 2009.