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Reliance, Essar among Anpara project bidders

Written by: Staff

Lucknow, June 6: Reliance Energy, Essar Power and yderabad-based Lanco Kundapalli today made bids for Rs 1,000 crore, 1000 mw Anpara supre thermal power project, which promises to help Uttar Pradesh tiding over the power shortages.

Official sources here confirmed that only these three companies have placed their bids so far for the Anpara-C power project.

As per the preliminary reports, Reliance Energy and Essar Power are the front-runners in grabbing the project, sources added.

The Request for Proposal (RFP) evaluation committee headed by Principal Secretary (Energy), would examine the bids and the letter of acceptance would be given to the the awarded company by the end of this month.

The awarded power company would float a new company for the Anpara unit and an agreement would be inked with Uttar Pradesh Power Generation Corporation Ltd (UPPCL) by the end of August, 2006.

Under the agreement, within the next six months the required land would be transferred to the new company while they will start setting up the unit within one year.

The first unit of 500 mw is expected within 54 months from the start of setting up of the new unit, while the next unit will be ready in another six months.

Earlier, UPPCL had extended the date from May 22 to June six as the last date for submitting the bids for the 1000 mw thermal power station in Sonebhadra district.

In the bidding process, the three companies would be required to deposit Rs three crore each as earnest money along with necessary documents.

In 2003, the state government had initiated the process of implementation of the project in private sector which was strongly opposed by the employees of UPPCL.

Meanwhile, the joint action committee of the power employees and engineers have criticised the UP government for going ahead with the proposal to hand over Anpara C to the private sector. ''We would not allow private companies to enter the Anapara C premises,'' the employees today threatened. Committee spokesperson Shailendra Dubey here said the state would have produced cheaper power while the private companies were quoting Rs 2.5 per unit to be produced from the Anpara 'C' unit.

He said while the public sector could have set up the units within 38 months, the private operator would take time till June 2011 for the same.

''The new unit is very close to coal pits, hence the price should not be more that Rs 1.25 per unit, which includes 60 paise for coal and generating expense and 65 paise as payment of interest on the loan,'' he claimed.

''It is a conspiracy by the government to purchase power at higher rates from private companies when cheaper power can by produced by the public sector units,'' he alleged.

The employees and engineers had staged a violent agitation in Anpara last year when the government decided to hand over the proposed unit to the private sector.

For finding a private entrepreneur, the UP Power Generation Corporation Ltd had floated the global tenders for the award of the Anpara 'C' project in November 2004.

The bidders were asked to submit the Request for Qualification (RFQ) by December 1, 2004. The task force on energy headed by the state chief secretary had approved the RFQ on March 14, 2005.

The state government in April, 2005 had cleared the RFQ submitted by the eight companies and these companies were asked to submit the Request for proposal (RFP).

The last date for buying the 400 page RFP document costing Rs 10 Lakh, was May 10, 2005 and only three companies turned up. The power regulator UP State Electricity Regulatory Commission also granted its approval to the RFP document in March last.

The approved RFP document has been handed over to all the three bidders in the fray for the Anpara 'C' project. Financial closure for the Anpara C thermal project is likely to be initiated as soon as the contract is awarded. The successful bidder would be required to commission the power project in next 48 months from the date of the award of the contract.

The successful bidder for the project would be given 80-acre land on lease for next 30 years at the annual lease rent of Rs 100 per acre.

Two thermal units Anpara A and Anpara B are already in operation since 1993, generating 1,560 MW. The Anpara C promoter would have the benefit of common facilities like coal washer, coal handling plant and water reservoir.

Five power distribution companies, all subsidiaries of the state run power utility UP Power Corporation Ltd, would sign separate Escrow account agreement with the power generator and purchase the entire 1,000 mw generated by the Anpara 'C'. Power companies had demanded government's guarantee for the project that was rejected and were instead, offered 'Escrow account cover'.


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