Our Bureau

Hyderabad, Aug. 31

The deadline for submission of request for qualification documents for the proposed 4000-MW ultra mega coal-based project to come up at Krishnapatnam in Nellore district of Andhra Pradesh has been extended till September last.

The Ministry of Power, Government of India, had notified inviting global tenders for pre-qualification of selection of developer on build, own and operate mode.

Ministry initiative

This is part of the Power Ministry's initiative for development of coal-based mega projects, each with a capacity of 4000 MW. These projects are to be awarded to developers on the basis of tariff based competitive bidding approach.

In pursuance of this move to augment capacity addition to meet the long-term power demand, Coastal Andhra Power, a subsidiary of Power Finance Corporation Ltd, had invited proposals for setting up one such project in Andhra Pradesh. The project envisages establishment, operation and maintenance of 4,000 MW project on imported coal, and its transportation from port to the power plant.

The proposed site is located at Krishnapatnam and well connected through Chennai-Howrah rail link. The projects would be awarded to the bidder by April 2007 and the successful bidder would get about nine months to achieve financial closure.

Govt support

The Andhra Pradesh Government had pro-actively pitched for this ambitious project, which was not in the initial projects proposed by the Centre and the Power Ministry. The State has set apart about 2,500 acres and has agreed to provide all necessary support infrastructure.

Based on potential of the area around Nellore and its proximity to Chennai, the State is seeking investments in the manufacturing sector by developing the region and attracting industries to locate special economic zones.

(This article was published in the Business Line print edition dated September 1, 2006)
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