Power Finance deluged by bids for ultra mega projects in MP, Gujarat

Over 25 companies have evinced interest in setting up ultra mega power projects in Madhya Pradesh and Gujarat, a senior official of the Power Finance Corporation said on Wednesday. The deadline for filing expressions of interest for the two projects ended on Tuesday.

Around 30 bidders have expressed interest in setting up the 4,000-Mw Sasan power project in Madhya Pradesh. The list includes NTPC, Neyveli Lignite and Reliance Energy, the official said.

For the 4,000-Mw Mundhra power project in Gujarat, around 25 bidders have expressed interest for setting up the green field project. The projects will be awarded on the basis of competitive bidding. Power Finance Corporation is the nodal agency for executing the projects and has floated special purpose vehicles.

It will also soon invite bids for three more projects in Maharashtra, Karnataka and Chhattisgarh.

Parties will be issued a request for proposal by the end of March, following which they will be required to submit price bids later this year. The projects will be awarded by the end of the year to successful bidders.

While NTPC has evinced interest in both the projects, Neyveli Lignite is interested in Sasan project.

The ultra mega projects are part of the government's efforts to raise power generation capacity to 200,000 Mw by 2012.

At present, the country has power generation capacity of 120,000 Mw.

Both NTPC and Neyveli are state-owned undertakings. NTPC is India's largest power generator, with a capacity of 24,000 Mw. Neyveli is a south India-based power generator with a capacity of 2500 Mw. Reliance Energy is the country's second largest private power generator.