BHEL-Alstom, Toshiba vie for APGenco project

The competition between Bharat Heavy Electricals Limited-Alstom joint venture and Toshiba of Japan to bag the EPC (engineering, procurement, construction) contract for the 1,600-Mw super-critical thermal power project at Krishnapatnam is expected to substantially lower the project cost, benefiting the Andhra Pradesh Power Generation Corporation (APGenco). The state-owned corporation is developing the plant.

"Though we have indicated a benchmark price in the bid documents, we are going to get a better bargain out of the stiff competition between the two principal contenders "" BHEL and France's Alstom combine, and Toshiba," Ajay Jain, managing director of APGenco, told Business Standard.

APGenco has set up a separate special purpose vehicle (SPV), AP Power Development Company, for the purpose.

The Krishnapatnam project is the first super-critical power project with each unit of 800 Mw capacity being developed by any state-owned power company in the country. NTPC, which is also going for super-critical technology, has so far opted for a maximum size of 660 Mw unit.

Jain said the bids would be finalised in August-September this year, at least a month before the developer for the Krishnapatnam Ultra Mega Power Project (UMPP) is selected. The Krishnapatnam UMPP is being offered for private development by the Power Finance Corporation.

Meanwhile, AP Power Development Company has received all the necessary clearances besides acquiring 1,200 acres for the proposed project, according to Jain.