Reliance outbids Lanco for UP power projects

Reliance Power today outbid the Lanco Kundapalli, in the rebidding for the Bara and Karchana thermal power projects by quoting the lowest tariff per unit. The Reliance quoted Rs 2.64 per unit for the 660X3 Bara thermal project and Rs 2.60 per unit for the 2X660 Karchana project. The fresh bids were invited by the UP Power Corporation with the approval of the UP State Electricity Regulatory Commission (UPSERC).

UPSERC had directed the UP Power Corporation to complete the rebidding within two weeks where only the companies which had earlier participated in the International Competitive Bidding would be eligible to quote the fresh price. The bids for the two projects were invited for the second time and opened today. In first bids opened on April 11 last, Lanco price was found to be lowest, Rs 2.88 per unit for Bara and Rs 2.83 per unit for the Karchana project. Accordingly the bids evaluation committee recommended that both the projects to be awarded to the Lanco. UP Power Corporation had also approved the Lanco bids.

However, the Energy task force (ETF) found the tariff too high and unsustainable in the long run. The ETF had also questioned the rationale of the price quoted by the Lanco as the same company which was awarded contract for Anpara C in 2006, had won the bid by quoting the lowest price of Rs 1.91 per unit.