Home Economy Reliance to be awarded Krishnapatnam power project Friday

Reliance to be awarded Krishnapatnam power project Friday


New Delhi : Anil Ambani-owned Reliance Power will be formally awarded the 4,000-MW Krishnapatnam power project in Andhra Pradesh Friday after the company emerged as the lowest bidder for it, a top official announced here Thursday.

Reliance Power turned out to be the lowest bidder as it quoted a tariff of Rs.2.33 per unit of electricity, Power Secretary Anil Razdan told a seminar on oil and gas held by the Observer Foundation Group.

Reliance Power has already been awarded the 4,000 MW Sasan power project in Madhya Pradesh, after the lowest bid by the Lanco-Globeleque consortium was declared illegal by an empowered group of ministers.

Razdan also confirmed that the power ministry would not prevent Reliance Power from participating in bidding for other ultra mega power projects (UMPP), such as the one proposed at Tilaiya in Jharkhand.

“The power ministry would not amend bidding criteria to prevent one developer bagging more than two projects under the UMPP scheme. However, performance guarantee will be made more stringent in order to optimise the possibility of developers defaulting and projects getting stuck,” he said.