Power Corp invites bids for 4000 mw project in Gujarat

The Power Finance Corporation Ltd on Thursday invited expression of interest to set up a 4,000 megawatt coal-based power plant at Mundra in Gujarat. This is the second ultra mega power plant being offered by PFC on build, own and operate basis this week.

On Tuesday, PFC had invited expression of interest to set up a 4,000 MW coal-based power plant at Sasan in Madhya Pradesh.The project will be awarded on the basis of tariff-based competitive bidding, PFC said in an advertisement.

Mundra and Sasan power projects are among the five ultra mega power projects of 4,000 MW each being planned by the government to be offered on competitive bidding basis. The other projects are in Chhattisgarh, Maharashtra and Karnataka.

Mundra, Maharashtra and Karnataka projects will be based on imported coal, while Sasan and Chhattisgarh will be pit-head projects.The five projects are expected to be commissioned by 2009. PFC, the nodal agency for the ultra mega power projects, has already set up a special purpose vehicle to facilitate tie-up of inputs and clearances for the Mundra project.

The SPV""Coastal Gujarat Power Ltd""will be transferred to the successful bidder with all assets and liabilities. At present, Coastal Gujarat Power is wholly-owned by Power Finance Corporporation.

PFC and state governments are also likely to pick up stakes in these projects.

The government expects the ultra mega power projects to cost around Rs 150 billion each.

The last day for submitting expression of interest for the Mundra project is February 28.

The project includes establishment, operation and maintenance of 4,000 MW coastal power project based on imported coal for its life cycle.

The project also includes tying up imported coal at port and its transportation to the power plant. The project is located at special economic zone (SEZ) in Mundra.

The government is encouraging ultra mega power projects in a bid to increase power generation capacity. India is planning to raise the power generation capacity to 200,000 MW by 2012 from the current 115,000 MW.

Major private sector power producers, including Reliance Energy, Essar Power, GMR Group, Sterlite group and Jindal Steel and Power have evinced initial interest in the ultra mega power projects.