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Krishnapatnam project bids to take time

The bidding round for the 4,000 MW Krishnapatnam ultra mega power project in Andhra Pradesh, scheduled to kick off on August 24, 2007, will have to wait a while before it can take off.

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Last Updated: Aug 22, 2007, 02.23 AM IST|Original: Aug 22, 2007, 02.23 AM IST
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NEW DELHI
The bidding round for the 4,000 MW Krishnapatnam ultra mega power project in Andhra Pradesh, scheduled to kick off on August 24, 2007, will have to wait a while before it can take off. The bidding round which starts with the request for proposal (RFP) can start only after the inter-ministerial committee, formed to look into certain components of request for qualification (RFQ) and RFP, submits its report to the empowered group of ministers (E-GoM). The committee formed in the aftermath of the Sasan controversy, is evaluating certain norms for components of ultra mega power project RFP and is likely to submit its recommendations in two weeks from now.

“The inter-ministerial committee is examining certain clauses of ultra power project RFP norms and till the panel submits its report, RFP of the Krishnapatnam project will have to be postponed,” said an official from the ministry of power. This could mean RFP will happen only by the second week of September and price bids could be invited by end of September.

According to sources, at present, the committee is deliberating on various issues, that had unseemingly derailed the progress of the Sasan project. These include laying down specific conditions which will ensure definite commitment to the project on the part of the participating consortiums, complete authorisation from the parent company on behalf of the subsidiary companies participating in the consortium and also redefining the role of consultants engaged in the project appraisal stage.

After initial hiccups, Power Finance Corporation, the nodal agency responsible for carrying out the bidding process for ultra mega power projects, had gone ahead with its plan to invite price bids for the project by August 24. Eight companies including NTPC, L&T, Reliance, Tata Power and Sumitomo Corporation had qualified to put in price bid for the 4000 MW coastal power project. Earlier, eight companies had progressed to the RFP stage after qualifying in the earlier round of bidding (request for qualification stage). The shell company has rejected the bid by YTL Power. Companies who will now place price bids are NTPC, L&T, Reliance, Tata Power, Sumitomo Corporation, Essar, Sterlite and DS Constructions.
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