A letter of intent, for the 4,000-MW Ultra Mega Power Project at Tilaiya in Jharkhand, will be issued tomorrow to Anil Ambani-led Reliance Power, which has emerged as the front-runner for the UMPP.
"The LoI (letter of intent) for the Tilaiya UMPP would be issued to Reliance Power tomorrow," a Power Finance Corporation official said.
The LoI is a document outlining an agreement between two or more parties before the agreement is finalised.
Reliance Power was the L1 (lowest) bidder for the Tilaiya UMPP in Jharkhand, for which the financial bids were opened on January 28, last month.
Also read: Reliance Power bags Tilaiya UMPP too
This is the third UMPP to be bagged by Reliance Power. It has already been awarded the Sasan (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh) projects.
The project would entail an investment between Rs 16,000 and Rs 18,000 crore, to be developed on a debt equity ratio of 70:30.
The financial and technical bids for the coal-based thermal power project were invited on December 29, 2008, and the final financial bids were to be opened within 15 days.
Five companies -- NTPC, Reliance Power, Lanco Infratech, Jindal Power and Sterlite Energy, of the 11 pre-qualified bidders submitted their bids for the project.