Anil Ambani Group firm Reliance Power Ltd, which emerged the lowest bidder for the Ultra Mega Power Project in Tilaiya, Jharkhand, today received the letter of intent (LoI) for the project.
Power Finance Corporation (PFC), which managed the tariff-based bidding process for the 4000 MW power project on behalf of the power ministry, awarded the LoI to Reliance Power.
This is the third UMPP awarded to the Reliance Power Ltd, the other two being Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh.
Government hopes to reap economies of scale through large size power projects and the introduction of efficient super critical technology in a big way through public-private partnerships leading to cheaper power.
The ADAG company had emerged the lowest bidder for the Tilaiya UMPP last month. Reliance Power quoted a price of less than Rs2 per unit to sell power from the 4,000 MW coal-fired project. NTPC Ltd, India's biggest power generator, bid the second-lowest.
The Tilaiya project is part of the government's plan to build 12 UMPPs near coal mines or along the coast.
Reliance Power is in the process of building UMPPs at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh it won through bids earlier.
Tata Power has bagged the contract for setting up a UMPP at Mundra, in Gujarat.