29.1.09

Reliance Power bags Tilaiya ultra mega project

Reliance Power outbid NTPC, Jindal Power and Sterlite Energy for the 4,000 mw ultra mega power project at Tilaiya in Jharkhand. This is the Anil Ambani group firm’s third successful bid for India’s largest series of power projects through which the government expects to add about 50,000 mw by 2015. India has an installed capacity of 1,40,000 mw. Reliance Power bagged the Tilaiya bid quoting Rs 1.77 a unit. The highest bid was around Rs 3 per unit. The bids for the coal-based thermal power project are being counter-checked and an official announcement will be made on February 2 or 3. The project entails an investment of Rs 18,000 to 20,000 crore with a debt-equity ratio of 70:30. However, the debt portion could be increased to 80% as the private developer may it hard to bring in a huge equity. Sources confirmed that the financial bids were opened on Wednesday. Two closest competitors for Reliance Power in the bid, National Thermal Power Corporation and Jindal Power, quoted Rs 2.37 and Rs 2.69, respectively.

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