Anil and Mukesh Ambani groups keen on 1,320 MW thermal power plant in Karnataka’s Gulbarga district

The companies belonging to the Anil and Mukesh Ambani groups are among the 23 investors who have shown interest in setting up a 1,320-mw thermal power plant in Karnataka’s Gulbarga district. The Karnataka government plans to set up the power plant through competitive bidding and 23 companies have passed the Request for Qualification (RFQ) stage, said a senior official of the Power Company of Karnataka (PCKL).
Besides Mukesh Ambani controlled Reliance Industries and Anil Ambani Group , the other major corporates include, Jindal Power, Tata Power, Adani Industries, GVK, GMR, Sterlite Energy, Videocon etc.
The estimated cost of the plant is around `7,500 crore and this is the first such power project in Karnataka to be awarded on the basis of competitive bidding. According to the PCKL official, the state will provide land and water connections. About 1,500 acres have already been acquired for the purpose. PCKL will soon invite price bids and the winner is expected to be announced by the end of this year.
According to the official, the power purchase agreement and financial closure of the project will be decided once the winning bid is selected. The project is expected to be operational after four years and the entire power generated will be for use in Karnataka only. The state is also planning another 1,320 mw-thermal plant in Ghataprabha in Belgaum district under competitive bidding. However, this project has been delayed as land has not yet been acquired.
Karnataka, which has been facing power shortages of 15-20%, plans to increase the state’s power generation capacity rapidly. The state-owned Karnataka Power Corporation (KPCL) plans to add 8,000 mw over the next four to five years at an investment of `41,000 crore.