December 02, 2008

Indian government hurdle in ADAG power plans

BS reported that any surplus should be used to generate additional power that should be sold through a tariff bidding process.

In the past, Reliance has not ruled out the possibility of increasing the capacity of the Sasan project beyond 4,000 MW, which will require additional coal.

The company is, however, planning to fast track the Chitrangi project. Under the earlier understanding with the Madhya Pradesh government, the project was scheduled to begin only by 2014.

Sasan, among the first two UMPPs to be offered for bidding, has been shrouded in controversy. Lanco had originally been awarded the project after it bid to generate power at INR 1.19 per unit.

The bid was later cancelled on grounds that it was declared void from the beginning, following a corporate restructuring. Reliance was then awarded the bid by virtue of being the next highest bidder.