BL reported that Lanco Infratech has emerged the sole bidder in the competitive bidding process for the development of a 1,320 MW coal based power plant at Rajpura in Punjab. The INR 7,000 crore project is to be executed on a build, own and operate model for the Punjab State Electricity Board.

Mr J Suresh Kumar CFO of Lanco Infratech said that Lanco’s was the sole bid filed with the authorities even though there were 5 to 6 others in the fray in the earlier stages. Those in the contention initially included Reliance Power, TATA Power, Essar and Sterlite.

Mr Kumar said that “It is for the Punjab Government to take a call on award of the project to Lanco. The matter has been referred to the State Electricity Regulatory Authority for its decision.”

He said that a special purpose vehicle created by the Punjab State Electricity Board will provide all the necessary clearances for the project and also facilitate coal linkages from domestic coal mining companies.

Mr Kumar said that while he would not like to speak for others, it could be the current economic conditions where the focus for most companies is on executing projects on hand rather than undertaking new ones for execution. He further added that most of the projects are based on 80:20 debt equity routes. We are confident of achieving financial closure.