The Letter of Intent (LoI) for awarding the 4,000 Mw ultra mega power project (UMPP) at Tilaiya in Jharkhand was today handed over to Anil Ambani-led Reliance Power.
Reliance Power was the L1 (lowest) bidder for the Tilaiya UMPP in Jharkhand, for which the financial bids were opened on January 28, last month.
This is the third UMPP to be bagged by Reliance Power. It has already been awarded the Sasan (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh) projects.
The project would entail an investment between Rs 16,000 crore and Rs 18,000 crore, to be developed on a debt equity ratio of 70:30. Another UMPP at Mundra in Gujarat is being developed by Tata Power.
Reorganising the fact that economies of scale leading to cheaper power could be secured through large size power projects and for introducing the efficient super critical technology in a big way, a unique initiative had been launched for development of UMPPs under tariff based international competitive bidding route.