Our Bureau

New Delhi, March 10

State-owned Power Finance Corporation (PFC) on Friday invited expressions of interest (EoIs) from domestic and international promoters for setting up a 4,000-MW `ultra mega' power project in coastal Karnataka.

The project, which would entail an investment of about Rs 15,000 crore, is among the five `ultra mega' projects identified by Government for implementation during the Eleventh Plan.

The station, to be located at Tadri in Uttar Kannada district, would be run on imported coal.

The developer would have to tie up coal and construct a dedicated port or jetty near the Tadri harbour, PFC said in an advertisement.

Shell co set up

PFC, which is the nodal agency for setting up the `ultra mega' projects, has already set up a shell company - Coastal Karnataka Power Ltd as its subsidiary to undertake various studies and obtain necessary clearances relating to environment, water and land.

According to the criterion laid out by PFC, the developers must have a net worth of at least Rs 1,000 crore, annual turnover of Rs 2,500 crore and experience of executing large projects whose capital cost should be at least Rs 3,000 crore during the past 10 years. The projects would be awarded on the basis of tariff-based bidding.

Earlier, PFC had invited EoIs for Sasan project in Madhya Pradesh, Mundra project in Gujarat and Sindhudurg project in Maharashtra.

PFC had received 67 applications for Sasan and Mundra projects.

All the projects would be transferred to the developers by the end of this year.

(This article was published in the Business Line print edition dated March 11, 2006)
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