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Tilaiya UMPP award by year-end
A Business Correspondent
Power Finance Corporation Ltd is soon likely to invite
requests for proposals from potential developers for the 4,000-mw Tilaiya ultra
mega power project in Jharkhand. The project is targeted for award by December
2008, making it the fourth UMPP in the series of around 10 such projects.
Thirteen companies including Tata Power, Reliance Power and Lanco Infratech have
submitted their requests for qualification. The other companies in the
fray for the 4,000 mw project include public sector NTPC, Sterlite Industries,
Jindal Steel & Power, Essar Power, GVK Power & Infrastructure, AES and
Malaysia's Dian Wijaya among others.
So far, the power ministry has awarded three UMPPs - Sasan (Madhya Pradesh),
Mundra (Gujarat) and Krishnapatnam (Andhra Pradesh). While Tata Power has won
the coast-based Mundra project, Reliance Power (Anil Ambani Group) has clinched
the other two. The Centre has also proposed UMPPs at Maharashtra, Orissa,
Karnataka and Chhattisgarh. UMPPs will be a crucial component for the country's
power capacity addition during the 12th Plan (2012-17).
Multiple bids
Power Finance Corporation Ltd has clarified that developers
would be allowed to bid for multiple ultra mega power projects, subject to the
payment of additional performance guarantee. PFC has now stated that the
developer bidding for more than one project would have to pay an additional Rs
150 crore as performance guarantee for every UMPP bid for. Hence, the mandatory
performance guarantee of Rs 300 crore would increase to Rs 450 crore for the
second project, Rs.600 crore for the third, and so on.
The matter of multiple bidding came into debate when Reliance Energy, which had
already won the Sasan UMPP in Madhya Pradesh, was awarded the Krishnapatnam
project in Andhra Pradesh. The company has also pre-qualified for the Tilaiya
UMPP in Jharkhand for which requests for proposal will be issued by May-end.
[May 26-June 1, 2008]
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