Reliance Power to get contract for Krishnapatnam UMPP tomorrow

Reliance Power to get contract for Krishnapatnam UMPP tomorrow

New Delhi: Anil Ambani-led Reliance Power, which emerged as the lowest bidder for the 4,000 MW ultra mega power project at Krishnapatnam, will be awarded the contract tomorrow, power secretary Anil Razdan said on 29 November.

Reliance Power has won the contract for the Krishnapatnam UMPP with a winning bid of for Rs2.33 per unit, Razdan said here.

Reliance Energy holds 50% in Reliance Power, while the rest is controlled through other group companies.

This is the second ultra mega power project won by Reliance Power, the first being at Sasan.

Reliance Power has announced plans to sell 10.1% of the company in an IPO, which many say, could be India’s biggest.

Meanwhile, Tilaiya UMPP in Jharkhand has received 13 bids, Razdan said, without disclosing the names of the bidders.

“The empowered committee is now reviewing some aspects on enhanced performance guarantees, and once that is completed then we will decide on the award," Razdan said.

While the govt has identified sites for nine UMPPs, out of which three have already been bid out, Tamil Nadu has identified two more sites for an imported coal-based UMPP and Orissa has identified two sites for pit-head projects, he added.

The government is promoting large power projects, each with a capacity of 4,000 megawatts (MW), as it seeks to tackle a chronic power shortage widely viewed as a serious threat to its fast-growing economy.

The government has made it mandatory for power generation firms interested in developing large power projects to submit a performance guarantee of Rs300 crore to qualify as a bidder.