Gujarat Urja Vikas Nigam Ltd (GUVNL) has issued Letters of Intent (LoI) to three power companies, for long-term power supply to the state utility in Gujarat.
"After finalising the bids, LoI has been issued to KSK Energy's subsidiary Vardha Power for 1,010 Mw at Rs 2.34 per unit, Shapoorji Pallonji for 800 Mw at Rs 2.80 per unit and Essar Power for 800 Mw at Rs 2.80 per unit," a senior official in the GUVNL said.
He added, "the bidders can ink the Power Purchase Agreement (PPA) with GUVNL in 45 days".
The PPA will be for 25 years and the price of power will remain the same for the entire period without escalation.
Earlier, GUVNL had invited bids for 3,000 Mw power on a long-term basis in which 11 power majors had participated but subsequently, five companies were shortlisted after the technical and financial scrutiny of the bids.
However, now, three companies have been issued LoI for 2,600 Mw power, for which supply has to commence within 60 months from the signing of PPA.
In 2007, GUVNL had, under the competitive bidding process, signed PPA with Adani group for 2,000 Mw in two separate bids for 1,000 Mw each, with Essar power for 1,000 Mw and Aryan Coal for 200 Mw.