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Reliance Power bags Sasan, to invest Rs 20,000 cr

business Updated: Jul 31, 2007 01:58 IST
M Rajendran
M Rajendran
Hindustan Times

Reliance Power has emerged as the lowest bidder in the revised auction for the 4,000 megawatt Sasan power project with a tariff of Rs 1.19 per unit.

The empowered group of ministers to resolve the Sasan imbroglio met on Monday to consider the report submitted by the board of Sasan Power Ltd.

Last week the ministerial group had concluded that the bid of the Globeleq-Lanco consortium was void and had asked Sasan Power to examine the course of action.

Sasan Power said on Monday it had received revised offers from the three remaining bidders, Jaiprakash Associates, NTPC and Reliance Power (formerly Reliance Energy Generation) and that Reliance Power, quoting a level tariff of Rs 1.19 per kilowatt-hour, was the lowest of the three bids.

The group of ministers has advised Sasan Power to issue the letter of intent to Reliance Power.

Anil Dhirubhai Ambani, chairman, Reliance Energy, said: "We are delighted to have won India’s largest ultra-mega power project through an international competitive bidding process. We look forward to building this world-class infrastructure facility." He added that the Rs 20,000 crore investment in the Sasan project would contribute to accelerating India’s economic growth by substantially raising current generation capacity.

A Lanco Infratech spokesperson said: “We do not accept that our bid had any discrepancy. However, we accept the government’s decision with all humility.”