Having received Central Electricity Authority's clearance for setting up a 2,640 MW thermal power plant in the state, Punjab State Electricity Board (PSEB) has floated a special purpose vehicle (SPV) to facilitate the development of the project.
"We have floated a SPV — Gidderbaha Power Ltd — which will be a wholly-owned company of PSEB," a senior PSEB official said.
Gidderbaha Power would ensure the acquisition of land, obtain clearances including environmental and forest and attain water and coal linkages, besides carrying out the bidding exercise for the project.
PSEB has already issued notification for acquiring 2,431 acres of land.
"We expect to spend Rs 400-450 crore on the acquisition of the land for this project," he said.
It has seeked the Coal Ministry's approval for coal linkage of 12.8 million tonnes per annum, he said.
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Proposed to be developed on build-own-operate (BOO) basis through tariff bidding route, bids from global players would be invited next month, he said.
The project is expected to involve an investment of Rs 13,200 crore.
As part of the state government's plans to generate 12,244 Mw of power in coming years, major thrust has been laid on setting up more power projects in the state.
The two other power projects — 1,320 Mw Rajpura thermal project and 2,000 Mw Talwandi Sabo project are in different stages of development.
The Talwandi Sabo project would be formally alloted to Sterlite Energy on September 2, while for the Rajpura project nine companies, including Reliance Power, Tata Power and Lanco Infratech would submit their price proposals by November 7.