Globeleq-Malaxmi to bid for Haryana power project

Globeleq, the power investment arm of Commonwealth Development Corporation (CDC), has joined hands with the Hyderabad-based Navabharat-Malaxmi group to bid for the 1,200-mega watt power project proposed by the Haryana government.

The Globeleq-Malaxmi consortium filed the request for qualification (RFQ) for the project on Friday.

The other major companies such as Jindal Aluminium, Tata, Reliance are also in the fray. The capital investment for the project is expected to be anywhere between Rs 4,000 crore and Rs 5,000 crore.

The Haryana government has offered the choice of fuel to the developer with a long-term power purchase agreement (PPA) of 15 years in the case of gas-based plant and 25 years for the coal-based project.

Keeping with the urgent need to meet the power demand, the government is proposing to develop the project on a fast-track basis at Matanhel in Haryana. Pre-qualification and finalisation of bids are expected to be completed in a month's time.

Globeleq is a Singapore-based power company owned by Commonwealth Development Corporation, UK, which invests in power projects in developing countries across Asia, Africa and Latin America.

The company is a partner in the 380-mega watt Lanco Kondapally project in Andhra Pradesh and the new alliance signifies a shift in the backdrop of former Lanco Kondapally managing director Y Harish Chandra Prasad becoming the promoter of Malaxmi group. When contacted, Prasad confirmed the development.

Malaxmi Group Private Limited and Navabharat Ferro Alloys have become strategic partners in bidding for several infrastructure projects, including power, roads and IT parks across the country.

The group has already signed a memorandum of understanding with the Orissa government for the development of a 600-mega watt thermal power project in which Globeleq is also keen to join as an equity partner, according to sources.

"They have initiated the process of due diligence of the Orissa project and several other players are also showing interest to join us," Prasad told Business Standard. Globeleq is expected to have a majority equity in the project if the group emerges as the successful bidder for the Haryana project.

Besides the power projects, Malaxmi-Navabharat group has bagged a 250-acre IT SEZ project from the Andhra Pradesh government for the development of which the promoters have been drawing up investment plans to the tune of Rs 1,000 crore.

The Malaxmi group, in association with Maytas and IDC, has also been shortlisted for the development of Hyderabad Metro Rail project besides bagging a road project in Madhya Pradesh.