Date:08/08/2007 URL: http://www.thehindubusinessline.com/2007/08/08/stories/2007080851580200.htm

PFC transfers Sasan project to Reliance Power

We are committed to invest Rs 60,000 cr in the project: Anil

Our Bureau

New Delhi, Aug 7 Power Finance Corporation (PFC) today formally transferred the 4,000-MW Sasan power project to Reliance Power Ltd.

Earlier, the project had been awarded to the Lanco-Globlec consortium, which was later cancelled by an empowered Group of Ministers following violation of contract terms.

The Power Minister, Mr Sushil Kumar Shinde, said: “I do not want to go into details about the Lanco-Globleq consortium. I am sure that Reliance will complete the project during the 11th Plan.”

The Chairman of Reliance Power, Mr Anil Ambani, said: “We are already committed to investing over Rs 60,000 crore in the next few years in new generation capacities. Our plans in this space have received a further impetus with the takeover of the Sasan project.”

He added that the total investment for Sasan would be more than Rs 20,000 crore.

“As per the current bid schedule, we plan to start the project in 69 months and will review how the execution can be accelerated.

“This is a complex project involving mining of coal of over 15 million tonnes annually.”

The project, when completed, would supply power to seven States – Madhya Pradesh, Uttar Pradesh, Delhi, Rajasthan, Haryana, Punjab and Uttarakhand.