The Hindu Business Line : REL to bid for coal-based project in UP

The board of directors of REL, which has already committed itself to building the 3,740-MW gas-based Dadri project in the State, has approved equity investments of Rs 1,500 crore in the Anpara `C' project, a company statement said. The debt-to-equity ratio for the company is expected to be 70:30.

"The power produced at Anpara will be sold to distribution companies undergoing privatisation currently, by way of a long-term power purchase agreement. The project is likely to be structured in a manner that makes it eligible for fiscal benefits under the Government of India's Mega Power Project Policy," the release said.

Reliance Energy, on Wednesday, announced its decision to bid for five electricity distribution companies, in Meerut, Agra, Lucknow, Varanasi and Kanpur, up for sale through a government-initiated international bidding process.

However, it was not clear whether the investment decision was taken at the company's board meeting on Tuesday. Company officials were unavailable for comment.

According to a senior analyst, the mega power project status would mean any company winning the contract would be able to sell power even outside Uttar Pradesh. Also, with the project in a position to feed five distribution companies up for privatisation, it would mean assured payments unlike when dealing with State electricity boards, he said.

Uttar Pradesh Rajya Vidyut Nigam Ltd had called for bids for privatisation of the generation project that is expected to cost Rs 4,000 crore. The total generation capacity at Anpara will be around 2,630 MW, including the existing 1,400 MW.