Wardha Power, a subsidiary company of KSK Energy, has emerged as the lowest bidder in a bidding process intiated by Gujarat Urja Vikas Nigam Ltd (GUVNL) to purchase power on long-term basis. Wardha is followed by Shapoorji Pallonji and Essar Power.
After evaluating technical bids last week, the apex electricity company of the state-GUVNL- today opened the financial bids.
"Wardha Power has quoted a price of Rs 2.34 per unit. The company has bid for supplying 1010 Mw of power," said sources closely associated with bidding process.
Shapoorji Pallonji has offered a price of Rs 2.80 per unit to become the second lowest bidder, while Essar Power has emerged as the third lowest with Rs 3.13 per unit. Shapoorji Pallonji and Essar Power's bids are for supply of 800 Mw and 1000 Mw respectively.
The other bidders include Pipavav Energy with quote of Rs 3.18 per unit for 500 Mw, TRN Energy with Rs 3.28 per unit for 150 Mw and PTC India Rs 4.95 per unit for 350 Mw.
In June 2009, GUVNL had invited proposals from power companies for procurement of 3000 Mw of power on long-term basis through competitive bidding.
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The company had also retained the the option to increase or decrease 20 per cent of the offered quantity depending upon the price quotes by the bidders.
Out of more than 30 interested players, as many as 11 power companies had submitted technical and financial bids to supply power to GUVNL, which include Essar Power, Jindal India Thermal, Shapoorji Pallonji, Chennai-based company OPG, MP Power, Avantha Power, Pipavav Energy, KSK Energy's subsidiary Vardha Power and TRN, a subsidiary of Aryan Coal.
However, 10 companies could made it to the financial bids round as Adani Power was put out of race by GUVNL on the grounds that its technical bids failed to provide confirmed document with regard to source of fuel.