The Haryana government on Monday decided to award the engineering, procurement and construction contract for the 1200 Mega Watt Thermal Power Station at Hisar to Reliance Energy Limited.
The State Council of Ministers headed by Chief Minister Bhupinder Singh Hooda took a decision to this effect at a meeting in Chandigarh.
The REL rate of Rs 3.147 crore per mega watt, which comes to a total of Rs 3775.43 crore, for the mega project is among the lowest in the country for a project of this size.
Haryana Power Generation Corporation Limited is setting up the two units of 600 MW each.
Public sector giant Bharat Heavy Electricals Limited, which was the only other bidder, had offered a higher per mega watt rate of approximately Rs 3.457 crore.
Special high-powered purchase committee, which is headed by Agriculture Minister Harmohinder Singh Chatha, held discussions with the two bidders two weeks ago.
Though BHEL reduced its rate, it could not match the REL offer, sources told Hindustan Times.
HPGCL had issued the bid document for the mega project in the first week of August 2006 and a total of six companies including BHEL, REL, Doosan, Dongfang, Alstom and Tata Projects purchased the tender.
The last date for submission of bids was September 25, but only REL had submitted its offer.
The other companies had reservations on issues such as the completion schedule, three years of satisfactory operation and time period for preparation of bids.
While the Union Power Ministry asked the state authorities to review some of these conditions, the opposition INLD had also leveled allegations of favoritism and course correction.
The government then extended the deadline till November 20 and relaxed the completion schedule from 30 and 36 months to 35 and 38 months for the two units of 600 MWs each.
It was only then that BHEL entered the race by submitting its offer on the last day of the extended deadline for filing of bids.
The HPGCL has already acquired 989 acres of land near Barwala in Hisar district.
The project is to be financed with debt-equity ratio of 80:20,with 20 per cent of the cost to be contributed by the state government and the debt portion is to be raised from PFC, REC and NCR Planning Board.
The bids were evaluated by the project consultants M/s Desein, New Delhi and reviewed by the Central Electricity Authority.