Hyderabad-based Lanco Infratech Ltd has emerged as the sole bidder for the Punjab government’s ambitious 1200-Mw thermal plant at Rajpura. Though seven companies had purchased the request-for-proposal (RFP) document only Lanco has submitted the bid.
Earlier, 13 companies companies including heavyweights like Reliance Power, Tata Power, L&T and Essar had submitted their request-for-qualification (RFQ) bids in May this year. Of these, 10 players were declared qualified.
The power project will be coal-based and is likely to attract an investment of Rs 6,000 crore, according to the state electricity department.
The Punjab cabinet yesterday gave its approval in-principle for setting up the 1,200-Mw thermal power plant at Rajpura, on which the work is likely to be inaugurated on December 8. The coal-based project would be set up on about 1,078.16 acres on a build-own-and-operate (BOO) basis.
For development of the Rajpura power project and also to enhance investors’ confidence, reduce risk perception and good response through competitive bidding, the Punjab State Electricity Board (PSEB) has set up a special purpose vehicle (SPV), namely Nabha Power Ltd, as its wholly-owned company to facilitate tie-ups of inputs, linkages and clearances for these projects.
Speaking to Business Standard, Nabha Power Ltd Director K B Kansal said: “While Reliance Power and Lanco Infratech came to the electricity department with RFP bids, only Lanco submitted the bid. We are going to take the decision on government and regulatory levels and the future course of action will be decided on the basis of the decision.”
The company (Nabha Power Ltd) will undertake preliminary studies and obtain necessary clearances and tie-ups regarding coal, water, land acquistion process, power selling arrangements with PSEB, the sole procurer from these projects, before awarding the project to successful bidders by way of selection of developers through tariff-based competitive bidding.
The SPV shall also obtain necessary environmental clearances. The state government has identified 1,085 acres of land for the proposed thermal power plant, for which the land acquisiton process has already started.