RPL edges out L&T to bag ultra-mega power project

Reliance Power Ltd is poised to bag a contract to set up 4000 MW mega power project in Krishnapatnam in Andhra Pradesh as it has emerged as the lowest bidder. Reliance Power Ltd (RPL) quoted a levelised 25-year tariff of Rs.2.336 per unit against L&T’ s Rs.2.68 and Sterlite Industries’ Rs.4.81. The project will use imported coal and is estimated to cost over Rs.16000 crores. The company may foray into market for Rs.12000 crores to meet the needs. Earlier this year government has awarded Sasan ultra mega power project to RPL after Lanco’s bid was disqualified.
Interesting there were nine qualified bidders of which Tata Power, Sumitomo, CLP-GMR, DS Construction and Essar Power bid not put a financial bid due to spiraling cost of coal in international markets. The coal breached $102 per ton-mark in Europe owing to shortfall in supply.