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Reliance Energy bags Rs 38 bn power project

Reliance Energy (REL) has outbid state-run Bharat Heavy Electricals (BHEL) to bag an engineering, procurement and construction (EPC) contract worth Rs 38 billion for setting up a 1,200 mega watt (MW) coal-fired power plant at Yamuna Nagar in Haryana, reports Economic Times.

The project, implemented by the state government, has received the mega power plant status. REL quoted Rs 31.7 million a MW, while BHEL pegged Rs 34.9 million a MW. REL has received a time schedule of 35-38 months to complete the project. After completing the project, REL will hand over it to the state electricity board.

The plant once operational will produce around 25 million units a day and will contribute significantly to reduce the severe load shedding the state is facing. Haryana has an existing capacity of 1,600 MW now. According to sources, REL has agreed to implement the project two months ahead of schedule.

The government had gone through the international competitive bidding route in Jul. 2006 and Alstom, Bhel, Doosan, REL and Dongfang (China) had purchased the tender papers. REL had submitted its offer in Sep. 2006. REL being the single bidder, the bid submission date was further extended by almost two months. Meanwhile, BHEL had also submitted its offer. The government had evaluated the offers along with its consultants CE and Desein.

REL had recently won 500 MW Parichha ii, and is also developing 1,200 MW Rosa power project and 600 MW Yamuna Nagar power project. The REL EPC group is also implementing rural electrification projects in UP.

The share of the company closed up Rs 0.77%, or Rs 3.85, at Rs 505.95 (Monday). Volume of shares traded at the BSE was 189,163.

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