Sources said Reliance Power offered to give power at a price of Rs 2.45 per unit in the tariff-based international competitive bidding process, as per its revised bid on April 24, 2008. Immediately it is not known how many other players were there in the fray for the bidding.
As per the bidding norms, Reliance Power will have to supply the agreed power from its plant with in 48 months (four years) of awarding the letter of intent (LoI). The LoI will be given to Reliance Power within three to four months.
Reliance Power is now planning to fast track the project, to be commissioned before the scheduled supply period. As per the earlier understanding with the Madhya Pradesh government, the project was scheduled to begin only by 2014, sources said.
Reliance Power is also discussing with the Maharashtra and Haryana governments to execute similar power purchase agreements, they said.
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Reliance Power intends to become the largest private sector power generator in the country, with 13 power projects with a capacity of over 28,200 mw, including the 4,000 mw each ultra mega power projects of Sasan in Madhya Pradesh and Krishnapatinam in Andhra Pradesh.
The company also had acquired three coal assets spread over 40,000 hectares with coal reserves of about two billion tonnes in the Musi Rawas region of South Sumathra in Indonesia to boost its power projects. The group is also planning another 4000 mw power plant
Sources said Anil Ambani, chairman, Reliance Power, had signed a memorandum of understanding (MoU) with the Madhya Pradesh government to set up the power project, soon after the Sasan project was awarded to the company.
The project is being implemented through MP Power Generation Private (MPPGPL), a subsidiary of Reliance Power, which was incorporated on September 7, 2007.
The project requires an investment of about Rs 16,000-18,000 crore and has an annual requirement of 15 million tonnes of coal. About 2,000 acres of land is being acquired for the project, the sources said.