Lanco, Tata Power get LoI

Lanco Infratech and Tata Power, the two successful bidders for the Sasan and Mundra ultra mega power projects, today received their letters of intent (LoI) from Power Finance Corporation.

Under a public-private-partnership (PPP), Lanco, with partner Globeleq, will build the Sasan plant based on pithead coal while Tata will construct the Mundra plant, based on imported coal. The plants, 4,000 Mw each, will be the country's largest.

According to Power Secretary RV Shahi, the government's role would not end with just awarding of projects, "but there will be full involvement of Power Finance Corporation (PFC), ministry of power and Central Electricity Authority (CEA), who will hand-hold the companies to help them complete their projects before schedule."

The inter-institutional group, comprising banking and power ministry officials, would also be active so that they have a smooth and faster financial closure, added Shahi.