Lanco Infratech has emerged as the private partner for the Sasan ultra mega power project (UMPP) and Tata Power as the partner for the Mundra project after the government opened bids to choose winners on the basis of the lowest cost per unit of power to be supplied, officials said on Monday.
The two companies emerged as partners in the special purpose vehicle (SPV) to be set up by the government and involving the Power Finance Corp, the private partner and a third financial partner. The SPVs would build the projects of 4,000 megawatts (MW) each for which the Power Ministry invited bids for private participation.
Lanco emerged winner among nine contenders by quoting a price of Rs 1.196 per unit of power for the coal based Sasan project, and in partnership with Globoleq, would require an investment of about Rs 16,000 crore.
Speaking to Hindustan Times, L Madhusudan Rao, chairman, Lanco Infratech said, "We were able to quote a lower tariff because of the effective size of the project. Further, since the project is centrally located distribution of power would not be a burden."
S Venkatesh, the company's managing director, said that Lanco expected to achieve financial closure to fund the project in the first year itself and the first unit of the project would start functioning by January, 2008, with the whole project scheuled to be completed by 2012.
Power Finance Corporation, the nodal agency to conduct bidding for these projects, had received 10 bids for the Sasan project and six for the Mundra project which would be based on imported coal.
Tata Power quoted Rs 2.26 per unit to bag the Mundra project.