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Reliance Power wins Andhra project

New Delhi, Nov. 8: Reliance Power today bagged the Krishnapatnam power project in Andhra Pradesh by offering to sell electricity at Rs 2.33 per unit. This is the third of the nine 4,000MW projects planned by the government.

Krishnapatnam is the second big power project won by the Anil Ambani group.

The company had earlier won the bid for the Sasan project in Madhya Pradesh.

The two other bidders were Larsen & Toubro, which quoted Rs 2.68 per unit, and Sterlite Industries, which offered to sell at Rs 4.18 per unit, sources said.

The price quoted by Reliance for the Rs 16,000-crore project in Andhra Pradesh is only marginally higher than the Tatasí winning bid of Rs 2.26 per unit for the Mundra project.

Like Krishnapatnam, the Mundra project will run on imported coal, and after the Tata bid, international coal prices have gone up by over 60 per cent.

Of the nine bidders, only three had placed price bids for the Krishnapatnam project.

The bids were opened today by a committee headed by Delhi Metro Rail Corporation chief E. Sreedharan.

The Power Finance Corporation will issue the letter of intent to the winner in a few days.

Power generated from the project will feed Andhra Pradesh, Tamil Nadu, Maharashtra and Karnataka.

Those who stayed out of the bidding process included Japanís Sumitomo Corporation, Tata Power, Essar Power and NTPC Ltd.

Power ministry officials said the bidding process has started for the Tilaiya project in Jharkhand.

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