SEVERAL INDIGENOUS and multinational power companies have shown interest in the proposed ultra mega thermal power project of 4000 mw to be established at Sasan in Madhya Pradesh.
The Power Finance Corporation, the agency appointed to shortlist private players for the project, has received 33 initial expression of interest (EOI) for the power plant coming up in Sidhi district.
Power, G-Global Investment House, GMR Energy, India Power Corp, Ispat Industries, Khanjee Holding Texas, Korea Electric Power, Lanco Kondapali, Madhucon Projects Ltd, NTPC Ltd, Reliance Energy Ltd, Sterlite, Suez Energy, Sumitomo, Tata Power, Torrent Group, and Tronoh Alco, Malaysia amongst others.
Other than these, companies like Neyveli Lignite, Mitsui of Tokyo, Larsen and Toubro Ltd, Jindal Steel, JP Associates, GVK Consortium have also submitted EoIs for Sasan project.
Ministry of Power also convened a bidder’s conference recently for these leading players to address their concerns about issues like fuel, water availability and environment clearances to enhance their confidence and reduce risk perception.
The payment security mechanism, the option of selecting technology and unit size, and technical and financial parameters for bidders were discussed at the meeting, but a final decision on many of these issues has not been taken, sources added.
Private developers have sought concessions, including tax benefits, a higher debt-equity ratio, an option to choose the unit size, mega power status and a payment security mechanism to ensure project viability.
Five private companies have been incorporated as PFC’s subsidiaries for executing each of the 4,000 MW projects and CEOs have been appointed for these companies. The five companies — Sasan Power Ltd (in Madhya Pradesh), Akaltara Power Ltd (in Chhattisgarh), Coastal Gujarat Power Ltd, Coastal Karnataka Power Ltd and Coastal Maharashtra Power Ltd — will be transferred to foreign or domestic promoters through a bidding process based on the least first year tariff quoted, Government officials said.
The projects, each of which is expected to cost around Rs 15,000 crore, have got a shot in the arm with the Ministry of Coal giving an `in-principle approval’ to allot coal blocks, officials involved in the exercise said.
State Governments have been advised by the Centre to provide necessary support to develop the projects, most of which are likely to be executed, using super critical technology units with a unit size of 800 MW each.
Projects, according to Government officials, will reap economies of scale and enable quick capacity addition, leading to cheaper power. The projects are likely to generate electricity at a cost of Rs 1.50 to Rs 1.80 per unit, they added.