Lanco ties up with China's Dong Seng for Sasan ultra power plant

New Delhi, Dec 28 (UNI) Lanco Infratech will import equipment from China's leading power equipment manufacturer for the setting up of 4,000 MW Sasan Ultra Mega Power Project in Madhya Pradesh.

''Dong Seng will be our prinicple equipment supplier for the Sasan project,'' Lanco Chairman Madhusudhan Rao told reporters here.

The company with its consortium partner Globoleq Singapore Pte (with a majority 70 per cent share) today receieved the letter of intent for the projects after quoting the lowest price of Rs 1.196 per unit.

''The price is quite resonable and viable keeping the scale of operation and captive coal mine. On 80:20 debt-equity ratio the total capital outlay would be Rs 16,000 crore,'' he said.

The pit-head Sasan project will have six power units of 660 MWs each. The company expects to reach financial closure of the project by December 2007 and the first unit will be operational within 36 months of financial closure.

''We will chalk out the strategy in the next few days. We are confident to meet the targets well before the scheduled time. The whole unit will be operational within four and a half years of financial closure,'' Mr Rao added.

Regarding the mine development plans at the project, Mr Rao said there is a requirement of 15 million tonnes of coal to achieve the 100 per cent rented capacity while there are 600 million tonnes of reserves.

Tata Power, which quoted Rs 2.26 per unit tariff for the Mundra project to be run on imported coal, also received the LoI. It has joined hands with Germany's Siemens and Korea's Doosan for equipment procurement and construction.

The government had received 10 bids for Sasan and six for Mundra project.

While NTPC quoted a tariff of more than Rs 2 per unit, Anil Ambani-promoted Reliance Energy quoted a tariff of Rs 1.29 and Tata Power Rs 1.41 per unit for Sasan.

Reliance Energy bid Rs 2.66 per unit, Adani Exports Rs 2.70, Larsen&Toubro Rs 3.22, Sterlite Rs 3.74 and Essar Rs 4.06 per unit for the Mundra Project.

UNI CS SRS RK1840