Re-bidding of 3,960 megawatt Tilaiya project likely in mid-February.

The re-auctioning of 3,960 megawatt (MW) Tilaiya ultra mega power project (UMPP) is expected in mid-February as 18 power procurers have decided to accept the termination notice for the plant given by Anil Ambani-led Reliance Power.

“The 18 procurers in 10 states have decided to accept the termination notice given by Reliance Power which was implementing the project. We are expecting the re-bidding of the project in mid-February,” principal secretary of energy, Jharkhand, S.K.G. Rahate told reporters.

Rahate was attending the memorandum of understanding signing ceremony between the Jharkhand government, Jharkhand Bijli Vitran Nigam Ltd, and the power ministry for the state joining the Ujwal Discom Assurance Yojana for revival of its power distribution company.

Reliance Power had given the termination notice in April last year for terminating the contract for the Tilaiya UMPP in Jharkhand.

“Now since all the procurers are ready to terminate the contract, they have requested the power ministry to start the process of rebidding for the project. I think it will take four-five weeks to complete the formalities for terminating the deal,” Rahate said.

Reliance Power, in August 2009, had won rights to set up a 3,960 MW power plant at Hazaribagh in Jharkhand after bidding a levellized tariff of Rs.1.77 per unit, but couldn’t start work on the project as the state government had not provided the required land even after more than five years.

JIPL, a special purpose vehicle created for implementing the project, had signed a PPA with 18 power off-takers in 10 states for 25 years.

The project was based on captive coal blocks, for which coal was to be sourced from Kerendari BC coal mine block. The total land requirement for the project was over 17,000 acre. On reasons for termination of the contract, Reliance Power had said, “There has been a delay of over five years in land acquisition by the state government for the power plant, captive coal blocks and related infrastructure.”

The PPA required procurers to hand over land and other clearances by February 2010. “However, the required land is yet to be made available. Even the forest land in the power station area, for which the stage-II forest clearance was accorded by the central government way back in November 2010, has not been handed over to JIPL till now,” the company had said in its statement. PTI

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