Reliance Energy, the power utility arm of India's diversified Reliance Industries, said Thursday it would participate in the bidding process of 1,000 megawatt thermal power project in Uttar Pradesh.
The Reliance Energy board approved the company's bidding in the Anpara project, which is expected to cost Rs.40 billion.
The state-owned Uttar Pradesh Rajya Vidyut Nigam Limited (UPRVUNL) has invited bids from private companies for the project, said a Reliance Energy statement here.
"Typically, the debt-equity ratio for such infrastructure projects is about 70:30. The Reliance Energy board has accordingly approved Rs.15 billion ($360 million) of investment as company's contribution for the project," said the statement.
UPRVUNL, which is responsible for generation of thermal power in Uttar Pradesh, invited the bids on behalf of the Uttar Pradesh Power Corporation Limited, the state-owned transmission company.
The pit-based, coal-based project, located 190 km from Varanasi, will be set up on build, own, operate and maintain basis.
The power produced at Anpara will be sold to the distribution companies, undergoing privatisation currently, by way of a long-term power purchase agreement.
A large number of domestic and international players, including all major industrial houses in the country, are understood to be interested in participating in the bidding process.
--Indo-Asian News Service