2 bidders lead Bakreswar power project race

Itochu-Bhel consortium and Marubeni Corporation has emerged frontrunners in the Rs 1,600 crore Bakreswar Phase IV and V project.

West Bengal Power Development Corporation Ltd (WBPDCL) is likely to invite final bid for the project by the third week of May.

"Only two entities have managed to get through the pre-qualification bids. We would likely to place the final order a couple of months after the final bids are opened," explained B K Paul, managing director, WBPDCL.

"The L1 bidder will probably commence the project 45 days after we have placed the orders. The Bakreswar Phase IV and V are 210 MW each and are likely to be completed 33 months after commencement of the project," he explained.

Equipment at the existing units of Bakreswar - I, II and III was supplied by Itochu, BHEL and Fuji through a consortium. This time however Itochu has teamed up only with Bharat Heavy Electrical Ltd.

Meanwhile, the Japanese Bank for International Cooperation (JBIC) has also sanctioned a ¥ 16 billion loan to WBPDCL some time back for the two phases of Bakreswar plant. Phase I, II and III for Bakreswar was also built with financial aid from JBIC.

The loan agreement for the project has already been signed and disbursement is likely to begin once the project is commissioned. The project has also received the clearance of the Central Electricity Authority (CEA) a few months back.

Other details like induction of a review consultant by the company under the direction of JBIC has also been finalised.

The state government through WBPDCL had drawn up plans of setting up two 210 MW units at the existing location where the units I, II and III are located under its second phase of expansion.

Phase IV and V of the project was scheduled much earlier but was stalled because the state government could not arrange for funds after Japan imposed a sanction on India following the Pokhran Nuclear test.

DEA initiated talks sometime in January 2002 with the Japanese bank for funding all project that were shelved after Japan imposed sanctions on India following the Pokhran Nuclear test.