The Hindu Business Line : Itochu-BHEL set to bag next stage of Bakreswar thermal project

THE ITOCHU-Bharat Heavy Electricals Ltd (BHEL) combine has emerged as the sole bidder for the Rs 1,480-crore second stage of the Bakreswar Thermal Power Plant (BKTTP).

State Power Department sources said that orders for the main plant package are expected to be given by July 2004.

The first stage of the BKTPP, as well the second, has received funding from the Japan Bank for International Co-operation (JBIC).

The project is owned by the State-run West Bengal Power Development Corporation Ltd (WBPDCL).

Sources said that while there were three companies at the pre-qualification stage, the Itochu-BHEL combine remained the sole bidder in the techno-commercial bid stage since Marubeni, which had also been pre-qualified, withdrew from the race.

"Neither the State Government which owns the project nor the JBIC which will be granting 85 per cent of the financing have objected to this," WBPDCL officials said, adding that Marubeni did not submit the documents necessary for participating in the subsequent rounds of the global tender and did not cite any reason either.

The same combine of Japanese and Indian companies had executed the first stage of this project comprising three 210 MW units.

The completed cost of the second stage would be about Rs 1,680 crore including the Rs 200-crore expenditure earlier incurred on common facilities for the entire project.

The project includes a Rs 150-crore coal handling plant too, the sources said, adding that the plant's coal tie-up is with the Sonepur Bazari mines of Eastern Coalfields Ltd.

The sources said that by this month, orders are likely placed for the first two 250 MW units of the Sagardighi thermal power plant, the 210 MW unit of the Santaldih power plant as well as the 210 MW seventh unit of Durgapur Projects Ltd, another State sector company.

These two power plants are being set up under the Centre's Accelerated Power Generation and Supply Programme.

Under this, the Union Power Ministry has decided to provide concessional finance at the rate of five per cent instead of 8.5 per cent for speeding up the projects, which are expected to help realise 10th Plan targets.