CESC bids for MP power project

The firm is keen on the 4,000 Mw power plant in Sasan due to the provision of ready supply of fuel at the site. If selected, it will rope in a partner to share the financial burden.

Kolkata-based power utility CESC Ltd has expressed its interest to bid for the Rs 16,000 crore mega power project at Sasan in Madhya Pradesh.

"We have submitted our request for qualification for the Sasan 4,000 Mw mega power project. If we are selected, we will participate seriously in the bidding process," CESC Managing Director Sumantra Banerjee said.

"The main reason to participate in the project is ready supply of fuel, i.e. coal blocks. Moreover, the infrastructure to transport power for sale will be made available," Banerjee said, when asked about his company's interest in the project outside its home state.

The Centre had earlier announced its intention to facilitate setting up of seven mega power projects to put generation across the country on a fast track.

He said out of two projects, CESC did not bid for the one at Mundra in Gujarat as it would depend on imported coal. "Other fiscal incentives will not help directly, as the contract would be awarded on the basis of competitive bidding on tariff and all incentives, if any, would be taken into account," he said.

If selected, CESC would rope in a partner to share the financial burden of the project. It would be the firm's first greenfield project entailing such large investment and capacity. CESC has several projects in the pipeline, including a 1,000 Mw project in Haldia.

The Power Finance Corporation (PFC), the nodal agency, will conduct the bidding process. It has received 15 applications for qualification for the Sasan project and 12 for Mundra.

Beside CESC, other bidders for the pithead-based Sasan project are Jindal Steel and Power, GMR Energy, Jaiprakash Associates, Suez Energy India Ltd and public sector company NTPC Ltd.

Around seven to eight companies have reportedly expressed interest in both the projects.

Tata Power, Reliance Energy Ltd, Larsen and Toubro, Essar Power, Hyderabad-based Lanco and AES India have bid for both projects, while Japanese giant Sumitomo Corp and US-based Khanjee Holdings have submitted requests for qualification for Mundra alone.