Itochu-Bhel sole runner for Bakreswar project

Marubeni Corporation has pulled out from the race for the Rs 1,600 crore Bakreswar Phase IV and V project leaving Itochu-Bhel consortium as the sole bidder.

"Although both Itochu-Bhel consortium and Marubeni Corporation had emerged as front runners in the Bakreswar Phase IV and V project being implemented by West Bengal Power Development Corporation Ltd (WBPDCL), the latter decided on staying away, leaving to Itochu-Bhel the only bidder," explained managing director, WBPDCL, B K Paul, told Business Standard.

"WBPDCL's technical evaluation of the Itochu-Bhel bid is likely to take 45 days," Paul added.

The successful bidder was expected to commence the project 45 days after getting the contract.

The Bakreswar Phase IV and V were of 210MW each and were likely to be completed 33 months after commencement of project work.

Equipment at the existing three units of Bakreswar were supplied by Itochu, BHEL and Fuji through a consortium.

This time however Itochu has teamed up only with Bharat Heavy Electrical Ltd leaving out Fuji Corporation.

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

The loan agreement for the project has been signed. The project has received clearance of the Central Electricity Authority (CEA).

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

Phases IV and V were scheduled for construction earlier but was stalled because the West Bengal state government could not arrange for funds after Japan imposed sanctions on India following the Pokhran Nuclear test.