Reliance, Bilt And Tatas In Race For Bawana Project

Reliance Power, the Tatas, the RP Goenka group and Ballarpur Industries are among the six bidders that the Delhi Vidyut Board has qualified for the second phase of the Bawana liquid fuel-based power project.

The other two selected bidders are the consortia of oil and equipment majors Unocal and Black &Veatch; and Destec Energy and GEC-Alsthom.

The board has picked these companies even though it is yet to get a liquid fuel linkage from the Union government. The power ministry is trying to get additional liquid fuel allocation from the petroleum and natural gas ministry.

The Rs 2,500-crore, 600-mw second phase project will use either naphtha or gas as fuel.

The board has already got fuel linkages for the first phase of the project - 2 mcmd of gas from the HBJ pipeline.

Both phases of the project are being routed through the competitive bidding route, with the final selection being made on the basis of tariff as against capital costs.

Of the two foreign consortia, Black and Veatch, which has tied up with Unocal, is the largest equipment supplier in the US. It recently got permission from the government to set up a 100 per cent subsidiary. Destec Energy is a sister associate of US-based Dow chemicals.

Reliance Power has already been selected to execute the first phase of the project (420 mw) but is awaiting a final clearance from the state government. Sources said that the state government is facing legal problems in extending a guarantee for the project.

The state government has recently appointed SBI Caps for evaluating the power purchase agreement between Reliance and the board for the project, which was formulated with the help of the ICICI.

The board has agreed to open an escrow account but the promoters are insisting on a backing from the state government for payments in the form of a guarantee.