PTI reported that Punjab State Power Corporation Limited has allotted 1350 MW coal based power project to diversified business entity Indiabulls with a capital outlay of nearly INR 7,000 crore.

Mr K D Choudhri CMD of PSPCL said that "The coal based power project has been allotted to Indiabulls which will be set up in Mansa district of the state."

He said that the project would be set up in a phased manner, which would give boost to the energy generation program of Punjab. In the first phase the company will set up two units of 270 MW each and thereafter, 3 units of 270 MW will be established.

Mr Choudhri said that the per MW cost of setting up a power plant stands at INR 5 crore to INR 5.5 crore which would estimate to about INR 7,000 crore for the 1350 MW project.

He said that PSPCL would be signing MoU with Indiabulls within a week for setting up a power project in the state. We are going to sign MoU within 4 to 5 days in this regard with Indiabulls.

Mr Choudhri said that the project has been proposed to be set up at Bhupli village in Mansa and will be spread over 600 acres of land. Since this project is to be carried out by company itself, we will not be acquiring land for it. But if they request us to do so then we will do it.

However, PSPCL has allotted the power project to Indiabulls without carrying out competitive bidding process. The project is allotted as per our new power generation policy, which does not require a bidding process.

(Sourced from Press Trust of India)