Date:12/12/2006 URL: http://www.thehindubusinessline.com/2006/12/12/stories/2006121204111000.htm

Back PFC defers financial bids opening for ultra mega projects

Our Bureau

May be opened on Dec 18; deadline unchanged

New Delhi , Dec. 11

Power Finance Corporation (PFC) has deferred opening of the price bids for the first two ultra mega power projects of 4,000 MW each to December 18. The financial bids for the two large coal-based power projects, to be set up in Madhya Pradesh and Gujarat, were to be opened and finalised on Monday.

According to official sources, PFC was scheduled to open the price bids for Sasan and Mundra projects today, but have been postponed as the head of a committee, set up by the Government to evaluate the bids and select the winners - Mr Deepak Parekh - is out of the country.

The bids are now likely to be opened on December 18, the official said.

The December-29 deadline for awarding the projects, however, remained unchanged, he added.

Nodal agency

PFC is the nodal agency responsible for conducting the bidding process of the ultra mega power plants. NTPC Ltd, Reliance Energy and

Tata Power are among the 16 bidders for the two power projects.

NTPC, Reliance Energy, Tata Power, Essar Power, Sterlite Group, Larsen & Toubro, Jaiprakash Associates Ltd, Jindal Steel and Power Ltd, Torrent Power and Lanco Infratech Ltd are the 10 bidders for the pithead coal-fired Sasan power project in Madhya Pradesh.

PFC has received six bids for the Mundra power project in Gujarat that would be run on imported coal. The Adani group, the Sterlite group, Tata Power, Essar Power, Larsen & Toubro and Reliance Energy have bid for the Mundra project.

Apex committee

An apex committee each has been constituted to carry out the technical and financial evaluation of the bids for the two projects.

The apex committee for the Sasan project comprises the Chairman and Managing Director of PFC, the Chairman and Managing Director of Punjab National Bank, the Chairman of Central Electricity Authority and the Secretary-level officers from Madhya Pradesh, Uttar Pradesh and Haryana.

The committee for the Mundra project has State-level representations from Gujarat, Maharashtra and Punjab.

The country is promoting the ultra-mega project initiative to build around seven large power stations of 4,000 MW each across the country. The first two projects are expected to go on stream during the Eleventh Plan period, while bidding for the other five projects will open in 2007.