Indiabulls Power wins bid to set up 1,600-mw power project in Chhattisgarh

19 March 2008

Mumbai: Indiabulls Power Services, the power sector company promoted by Indiabulls and owned by Indiabulls Real Estate, has been awarded the 1,600-mw Bhaiyathan power project in Chhattisgarh along with a 350-million tonne coal block in the state.

The company beat two other bidders, Sterlite Industries and the GMR group for the right to build the coal-based facility in the eastern state of Chhattisgarh

With international coal prices touching $100 per tonne, pithead coal power plants provide attractive opportunity for power producers, said industry observers

The Chhattisgarh government had called bids for the sale of 65 per cent power produced by the plant, in which Indiabulls Power placed the lowest bid of Rs0.81 per kWh for the project. Sterlite Industries and the GMR group, the other two major bidders for the project quoted Rs0.88 per kWh and Rs0.89 per kWh respectively.

The total cost of the project is Rs8,000 crore and it will be completed within three years.

Of the total power to be generated from the project, 65 per cent would be supplied to the host state at a tariff of 81 paise per unit. The company is free to sell the balance 35 per cent to private consumers and industries.This will average out the overall realisation of the plant.