The Hindu : Business : PFC’s efforts to quicken ultra mega projects

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Saturday, Aug 04, 2007
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PFC’s efforts to quicken ultra mega projects

Special Correspondent

Bids for Krishnapatanam project will open on August 24

Gearing up to handover the SPV to RPL
Bids invited for the Punjab project

NEW DELHI: With the Union Power Ministry stepping up pressure on all the stakeholders and State entities to work overtime to achieve the XI Plan target of generating 78,000 MW of power, Power Finance Corporation has decided to adopt a pro-active approach in dealing with the Ultra Mega Power Projects.

With the controversy surrounding the 4,000 MW Sasan Ultra Mega Power Project behind it, PFC is now gearing up to hand over the special purpose vehicle (SPV) Sasan Power Limited to Reliance Power Limited that has won the bid for the project at Sasan in Madhya Pradesh.

It is understood that the Union Power Minister, Sushil Kumar Shinde, is keen that this project should get rolling as soon as possible and has asked the authorities to complete all the formalities within the shortest possible time.

“The seriousness of the Minister’s directive can be gauged from the fact that the handing over of the SPV for the Sasan project was scheduled within one month but now all the formalities will be completed and the project handed over to Reliance Power by August 5,” a senior official said.

The entire project will be completed in 49 months, much earlier than what had been originally promised by the private developer. The authorities want the project to be put on stream before the end of the XI Plan in March 2012 so that it becomes part of the 78,000 MW target set by the Ministry and the Planning Commission.

Similarly, the process for awarding the 4,000 MW Krishnapatanam Ultra Mega Power Project in Andhra Pradesh has also been put in top gear.

The bids for the project will be opened on August 24 and eight parties have been shortlisted.

Front runners

The front runners for the project include RPL, Tata Power that had already bagged Mundra Ultra Mega Power Project in Gujarat, National Thermal Power Corporation, Lanco Infratech and Jaypee Power Limited.

Power Finance Corporation has also been appointed as the major consultant for a 2,000 MW thermal power project at Talwandi Sabo in Punjab for which bids have been invited and basic formalities have been completed.

The project, to be commissioned by 2010, has attracted investment proposals from national and international bidders.

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