PSEB takes up Lanco bid
Jangveer Singh
Tribune News Service

Chandigarh, December 23
The Punjab State Electricity Board (PSEB) took up the lone offer bid by Lanco Infratech to offer power from the proposed 1320 megawatt thermal plant at Rajpura at Rs 3.38 per unit at a board meeting today.A special purpose vehicle of the PSEB, which had received and opened the bid, has referred it to the Board. The bid is rated to be on the higher side. Earlier, the PSEB had urged the Punjab State Electricity Regulatory Commission (PSERC) to allow opening of the lone bid which had been allowed with the condition that the commission’s approval be taken before issuing the letter of intent (LoI).

Board Chairman Y S Ratra when asked whether there was any move to renegotiate the power price said the issue had been discussed in its entirety at the meeting but refused to disclose any details. Sources said the board, which has to place the bid before the Regulatory Commission, is considering a negotiation in the power price.

The tariff quoted by the company is 52 paise per unit higher than the tariff approved for Talwandi Sabo project, which was allotted to M/S Sterlite at 286 paise/unit just a couple of months back. A difference of 52 paise per unit means that consumers of PSEB shall be paying Rs. 460 crore per per year more for getting power from the 1320 MW Rajpura plant for the next 25 years as compared to the Talwandi Sabo plant. This will cause a total additional liability of Rs. 11,550 crore.

Board officials, however, explain that there is a difference between the recent Talwandi Sabo bid and that of the Rajpura thermal plant because there has been depreciation in the capital cost of the former bid. However, not many are biting this, with reduced bids being received for the same capacity thermal plants (1320 mw) in Haryana and Uttar Pradesh. The Jhajjar plant in Haryana was awarded to China Light and Power Company at Rs 2.99 per unit and in Karchana in Uttar Pradesh the Jay Pee group will sell power at Rs 2.97 per unit.

The PSEB had identified three thermal projects at Talwandi Sabo, Rajpura and Gidderbaha under the competitive bidding policy, which has been taken up by the Union Government for allotment of ultra mega thermal projects. For the Rajpura project it received a lone bid and chose to approach the Regulatory Commission to approve the opening.

The PSEB Engineers Association, however, maintains that following the ‘negotiation’ route with Lanco would be against the spirit of competitive bidding.