Indiabulls arm bags 1,600-MW power project in Chhattisgarh
Indiabulls Power Services, a wholly-owned subsidiary of Indiabulls Real Estate, has bagged a contract to develop a 1,600-MW coal-based power project in Chhattisgarh, outbidding close contenders GMR Group and Sterlite Industries. The company placed the lowest bid of 81 paise per kWh for the project. GMR and Sterlite were the two other close contenders for the projects as they put in bids of 88 paise per unit and 89 paise per unit. Others in fray included Reliance Power and Tata Power.
Of the total power to be generated from the project, 65 per cent would be supplied to the host state at a tariff of 81 paise per unit. The company is free to sell the balance 35 per cent to private consumers and industries. The total cost of the project is Rs 8,000 crore and it will be completed within three years.
There were a total of 10 bidders including Reliance Power and Tata Power. All bids were on the basis of levelised tariff that considered escalation of prices over time. With international coal prices touching $100 per tonne, pit-head plants provide attractive opportunity for power producers, said industry observers. Indiabulls had recently raised Rs 1,600 crore from steel tycoon LN Mittal and Farallon Capital by placing 28.6% equity to pursue its power business. Indiabulls Power Services is also setting up two mega thermal power plants in Maharashtra with an aggregate capacity of 3,960 mw.
Indiabulls Power has also signed an agreement with the government of Arunachal Pradesh for four medium-sized hydro projects in the state, where feasibility studies are in progress. A joint venture between SembCorp and Indiabulls is in the fray for the 4,000-mw ultra-mega power project at Tilaiya, Jharkhand. Temasek Holdings, an investment fund owned by the government of Singapore, is the promoter of SembCorp and owns 49.9% stake in the company.
Tags: Chhattisgarh, hydro prjects, Indiabulls, power project, thermal power