Bses Eyes T & D Deals With Oman Major

BSES, the Rs 1,900-crore power major, is in talks with the Oman-based power major Al Anwar Company for bidding to take over the transmission and distribution (T&D) network in that country.

In a presentation to financial institutions last week, BSES said it is in parleys with the Oman company to form a joint venture which will bid for the T&D network and a power project there. This is in response to a tender floated by Oman for the construction, operation and maintenance of a 200-mw gas/diesel-based power project. The tender has also invited bids for the T&D network. The power project will be set up at Salalah. A tender has also been floated for setting up 42 km of 132-kv transmission lines and two 132-kv substations.

BSES was first approached by Al Anwar Company of Oman after which a high-level team visited that country for detailed idea about the project and the investment opportunity.

Discussions are being held with Oman authorities for further action, the presentation to FIs states. This is the first known instance of BSES contemplating such a big international project.

However, a senior company executive refused to comment on the issue.

BSES has also stated in the presentation that it has been declared the lowest bidder by the Dubai Electricity Water Authority for a Rs 150-crore tender . Negotiations are at an advanced stage.

Meanwhile, BSES has been shortlisted by the Orissa government for picking up a stake in the Orissa Power Generation Corporation (OPGC). The state government had invited bids for picking up a 26 per cent stake in OPGC. This was later increased to 49 per cent. The power company, which is among the eight shortlisted companies in the prequalification bid, is preparing for the commercial bid.

Another state government undertaking Gridco, too, has invited bids for picking up a 51 per cent stake. BSES has gone ahead and participated in the prequalification bid despite having burnt its fingers in its dealings with Gridco in 1997.

It had signed a three-year distribution agreement with Gridco in 1996. The agreement was abruptly terminated by Gridco after just one year.