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India's Reliance Energy wins US$4 billion Sasan power project

India's Reliance Energy Ltd. has won a bid to build a US$4.9 billion (??3.6 billion) power project in central India that will boost the company's generating capacity five-fold.
/ Source: The Associated Press

India's Reliance Energy Ltd. has won a bid to build a US$4.9 billion (??3.6 billion) power project in central India that will boost the company's generating capacity five-fold.

Reliance Energy, which has a current capacity of 941 megawatts, said in a statement late Monday it plans to invest 200 billion Indian rupees to build the 4,000-megawatt coal-based power plant.

The Sasan power project is part ot India's aim to add 70,000 megawatts of power over the next five years to meet peak-time deficits, currently estimated at 12 percent.

Reliance Energy lowered its selling price for power produced from the plant to 1.19 rupees (2.9 US cents; ??.02) per unit to match a price quoted in January by a consortium including Lanco Infratech Ltd. and Globeleq Singapore Pte. The consortium won the initial bid.

However, the Lanco-Globeleq bid was voided because one of the consortium partners was changed after the group won the bid.

Reliance Energy had originally submitted a plan to sell electricity from the plant at 1.29 rupees a unit.

Reliance Energy shares rose 2.2 percent Monday to close at 780.25 rupees on the Bombay Stock Exchange.