Bhel bags power projects in the lowest bid ever

The government-owned Bharat Heavy Electricals Limited (Bhel) has bagged the state-run Chhattisgarh State Electricity Board's (CSEB's) contract to set up two power plants in Korba district quoting Rs 1.96 crore per Mw, the lowest it has ever quoted for a power plant in the country.

Significantly, the rate is almost half the Rs 3.61 crore per Mw that China National Machinery and Equipment Import and Export Company (CNMEC) had bid for the 500 Mw Korba (West) in an earlier round of bidding.

In fact, CNMEC had originally bagged the project by outbidding Bhel but was disqualified a few months ago for failing to start work.

Apart from Korba (West), Bhel has also been awarded the 1,000 Mw Madwa power plant. Both the projects will be completed in 48 and 42 months, respectively.

This is the biggest contract the company has ever bagged to set up power plants.

"The negotiation over the cost was completed in record 34 days "" no parley had been concluded in such a short time," said CSEB Chairman Rajib Ranjan.

"The lowest rate for any power project in the country could be achieved following the successful outcome of a series of meetings with the senior officials of Bhel and the Central Electricity Authority (CEA)," Ranjan added.

The two ambitious projects mark a big leap forward for the state-run power board to make Chhattisgarh a power hub.

CSEB recently awarded the Letter of Intent (LoI) to Indiabulls Power Generation (IPGL), the power sector subsidiary of the real estate major Indiabulls, to set up 1,600 Mw Bhaiyathan thermal power project.

Also read:

January 29: BHEL to build Korba, not CMEC
August 04, 2007: Chinese firm bags Chhattisgarh power projects
September 25, 2007: Ch'tisgarh invokes bank security on firm
October 7, 2007: China firm sues Chhattisgarh electricity board