Lanco gets letter of acceptance for Anpara C power project

Lucknow, Sep 28 (UNI) Hyderabad-based Lanco Kundapalli has finally been provided with the letter of intent (LoI) to construct the 1000 Mw Anpara C thermal power project.

Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd has issued the firm with the LoI, paving way for contruction of the thermal power unit, which would provide electricity to power-starved UP at Re 1.91 per unit, when it becomes operational in 2011.

Lanco has deposited a Rs 90 crore bank guarantee for the project.

If it fails to start the project in two months, the government can forfeit the amount.

After a delay of 15 yrs, the UP cabinet on September 23 had finally cleared way for Lanco to develop the prestigious Anpara 'C' power project.

Lanco Kundapalli had won the contract through Centre's competitive bidding policy, beating Anil Ambani's Reliance Energy Ltd.

With this, the Sonebharda-based Anpara C has become the biggest ever thermal power project to be cleared in private sector in UP.

Government sources claimed once the 500x2 Mw project is completed in 2011, it would produce power at the cheapest rate in the world at Re 1.91 per unit. The project would cost Rs 4,000 crore and turn UP into a power reliant state, sources added.

Lanco Kundapalli is promoted by Vijaywada Congress MP L Rajagopal and another Andhra Pradesh minister, L Madhusudan as its president and G Bhaskar Rao as its Vice-President.

Interestingly, Anpara A, B and D are under public sector projects.

The 'Energy Task Force' headed by chief secretary had recently cleared decks for award of the contract for the 1,000 MW thermal power project to Lanco.

There was a delay of about four months as the bid was opened on June 6 and Lanco was declared the lowest bidder in fray. But it took nearly three months to the Power Corporation to approve the bid early this month.

The board of Power Corporation had ratified the report of the 'Bid evaluation committee' for the Anpara C project on September 7.

The Request For Proposal (RFP) of the project was opened here on June 6, where the bids of Lanco were found to be the lowest. Other bidders comprising Essar Power and Reliance Energy, were considered to be front runner, for proximity of Anil Ambani with the present political dispensation in UP.

As per the time frame decided by the power regulator 'UP State Electricity Regulatory Commission', the process for the award of contract to successful bidder -- the issue of 'Letter of Acceptance', by the UP Thermal Power Generation Corporation to Lanco should have been completed by June 23.

Lanco, apparently disturbed over delay in award of contract, had approached UP Thermal Power Generation Corporation Ltd early August for the issue of Letter of Acceptance in its favour for the Anpara 'C' Thermal Power Project.

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