PFC issues LoI to Reliance Power for Sasan proj

New Delhi, Aug 2: Power Finance Corporation (PFC) yesterday issued the letter of intent (LoI) to Anil Ambani-led Reliance Power Ltd (RPL) for the 4,000 MW Sasan Ultra Mega Power Project (UMPP) to be developed in an area of 3,500 acres.

''The company will now be transferred to Reliance Power after executing project documents, signing of share purchase agreement, etc,'' Sasan Power Ltd Chiarman Shyam Wadhera told reporters here.

These issues generally takes about 60 days to be resolved, but the work will be completed faster than that, he added.

''Allocation of coal blocks for the project, which had earlier been given to NTPC, will not be affected as the Coal Ministry has allotted a larger block to NTPC,'' Mr Wadhera said.

He said the Government will deduct Rs one crore from Lanco's Rs 120 crore security deposit.

Reliance Power Director (Business Development) J P Chalasani said that they have ordered for a 660 MW boiler from a international manufacturer for the Sasan UMPP.

When asked as to why Lanco was disqualified for the project, Mr Wadhera said, ''Problem was the basis on which they were qualified.'' No inconsistency was found which was furnished by Globeleq, he said.

The land acquisition notification will be issued shortly under Section 6 after which forest and environment clearances for the project is to be made by the Ministry of Environment.

The site inspection by the Ministry has been done two days back.

The matter will be taken by Central Electricity Regulatory Commission (CERC) and an application has to be filed under Sectioon 63 of the Electricity Act.

Mr Wadhera said that EGoM has been constituted to expedie the implementation of all other ultra mega power projects (UMPPs).

The Empowered Group of Ministers (EGoM) awarded the controversial 4,000 MW Sasan Ultra Mega Power Project on Monday to Reliance Power Ltd (RPL) after the group matched the tariff bid of original winner Lanco Infratech.

The EGoM had asked Sasan Power Ltd, the special purpose vehicle set up to execute the project, to seek fresh bids from the other bidders than Lanco and refer the matter back.

The revised bid of Reliance Power of Rs 1.19616 per kWh was the lowest among the three bids.

UNI