Home Economy Rajasthan power project attracts overseas bids

Rajasthan power project attracts overseas bids

By IANS

Jaipur : Companies from France, China and South Korea have submitted technical bids to set up an Rs.46-billion ($1.2 billion), 1,200 MW power plant at Kali Sindh in Rajasthan.

Officials said the bids had come from two Chinese companies besides a French and a South Korean firm each. Four Indian companies are also in the running.

“Bids from foreign companies were invited for the first time. Four foreign companies along with four Indian ones have qualified for the bidding,” a Rajasthan Rajya Vidyut Utpadan Nigam (RRVUN) official told IANS.

The Indian companies are Reliance, Bharat Heavy Electricals Ltd, Cethar Vessels and Punj Lloyd.

“The Nigam will now examine the financial bids by the end of this month and issue a contract to one of these companies,” he added.

The RRVUN has acquired land for setting up the coal-based power plant near Kali Sindh river in Jhalawar district, over 340 km from Jaipur.

Two units of 600 MW each will be set up under the project.

It will be mandatory for the selected company to complete the first unit within three years and the second unit within the next three and a half years.

The project is expected to cost Rs.46 billion, of which the state government will fund Rs.9.28 billion. The remaining will be raised from financial institutions. Work on the project is likely to begin by July 2008.