Lanco lowest bidder for Sasan power project

Lanco Infratech has emerged as the lowest bidder for the 4,000 MW Sasan ultra mega power project, outsmarting its nearest rivals Reliance Energy and Tata Power as well as seven other contenders.

The Lanco-Globoleq combine quoted a bid of Rs 1.196 per unit for the coal-fired project that will require an investment of Rs 16,000-20,000 crore (Rs 160-200 billion).

Reliance Energy had quoted a tariff of Rs 1.29 and Tata Power Rs 1.41 per unit, while state-run NTPC Ltd bid much higher, power secretary R V Shahi said.

Power Finance Corporation, the nodal agency to conduct bidding for these projects, had received 10 bids for the Sasan project and six for the imported coal-based Mundra project.

The lowest bidder for the Mundra ultra mega power project is expected to be announced later in the day.

The Sasan project is likely to achieve financial closure within six months and the first unit of the Sasan project would start generation by the end of 11th Plan.