L&T leads race for Rs 7,000 cr Mahagenco project | business | Hindustan Times
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L&T leads race for Rs 7,000 cr Mahagenco project

business Updated: Sep 07, 2009 22:14 IST
Suprotip Ghosh
Suprotip Ghosh
Hindustan Times
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The Larsen & Toubro (L&T)-Mitsubishi Heavy Industries consortium has emerged the frontrunner for expanding the 2000-megawatt (mw) Koradi power project at Koradi, Maharashtra.

The bid, to be finalised in the coming two weeks, could be to the order of Rs 7,000 crore, according to sources. L&T officials refused comment when contacted.

The project, under the aegis of Mahagenco, the power generation arm of the government of Maharashtra, is the first using the super-critical boiler technology in the state.

Three consortia have submitted bids for the tender, which floated in August 2009. Apart from L&T-Mitsubishi, Bharat Heavy Electricals Limited (BHEL) and Doosan Heavy Industries and Construction Co. of Korea also bid for the project.

Mahagenco is setting up three units of 660-mw coal-fired super critical power plants at Koradi, where it has an installed capacity of 1,040 mw. The new technology would significantly bring down the cost of power generation, sources said.

The expansion would come at an investment of Rs 11,880 crore with debt-equity portion of 80:20. The company has already tied up the debt component of Rs 6,512 crore with the Power Finance Corporation.