REL set to bag Rs 4000-cr DVC deal

A day after winning the Sasan ultra mega power project, Reliance Energy Ltd emerged as the front-runner on Tuesday to bag a contract valued at nearly Rs 4,000 crore (Rs 40 billion) to set up a power plant for Damodar Valley Corporation.

The Anil Ambani group firm is the sole bidder for the engineering, procurement and construction contract for DVC's proposed 1,000 MW thermal power plant at Raghunathpur in Purulia district of West Bengal.

"Reliance Energy turned out to be the sole bidder for EPC contract despite extension given as desired by interested parties including BHEL," a top DVC official told PTI.

REL submitted both technical and financial bids. Four companies, including REL and state-run Bharat Heavy Electricals Ltd, had purchased tender documents, but only one bid was submitted, the official said. DVC had given 15 days extension to BHEL during pre-bid

discussion, but the PSU did not submit its bid.

Sources said China's Dongfang Electric and CMEC were the other two firms initially in the fray, but neither of them submitted bids.

The development comes a day after the central government approved awarding the 4,000 MW Sasan project to REL's subsidiary Reliance Power Ltd. The project would entail an investment of about Rs 20,000 crore (Rs 200 billion).

REL share prices rose almost four per cent on the Bombay Stock Exchange on Tuesday to settle at Rs 793.45. Union Power minister Sushilkumar Shinde had earlier laid the foundation stone of the Raghunathpur project.

DVC has received in-principle approval from the ministry of environment & forests for the power plant.

Sasan go-ahead for REL tomorrow