Reliance Power Bags Sasan Power 4,000 MW Mega-Project

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Researched by Industrial Info Resources (Sugar Land, Texas) – Reliance Power Limited has come out the winner in the bidding for one of India’s mega-power projects. The contract for the 4,000 MW Sasan Ultra Mega Power Project in Madhya Pradesh was awarded by the group of government ministers ‘empowered on large power projects’ (EGoM). Previously EGoM had declared the bid of the previous lead developer, the Lanco-Globeleq consortium, invalid after the Singapore based Lanco-Globeleq consortium had outbid REL. Their bid was declared void after Globeleq sold its total stake in Globeleq Singapore to Lanco and Jindal Steel and Power after the consortium had initially won the bid.

The state’s Power Finance Corporation (PFC) managed bids from 16 companies including NTPC, Tata Power, Reliance Energy, Essar Power, Larsen & Toubro, Jindal Steel & Power, Sterlite Industries and the Adani Group. All these companies are expected to join the bidding for other mega-projects. Competition was keen for the project, which is one of eight mega projects planed to assist in closing India’s power gap by an additional 70,000 MW by 2011. The government is expected to confirm RPL’s winning bid before August 5.

REL reduced its price for the output from the coal-fired plant to 1.196 rupees per unit ($1:40.28 rupees) from 1.29 rupees. Many major companies in India are looking for a part in the drive for more power. By winning the Sasan project will increase its installed capacity from the current 941 MW by a factor of five.

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