Calcutta, Dec 10: The Bihar government has issued a request for proposal (RFP) document to Amalgamated Transpower Ltd, a consortium of Ontario Hydro of Canada and Larsen & Toubro, to develop the Chandil hydroelectric power project of 2x250mw.

Energy secretary A K Upadhayay said the RFP, issued last month, is the first that allows bulk sale of power to a third party and individual industrial consumers and is not based on any power purchase agreement with the Bihar State Electricity Board (BSEB). Most investors eyeing Bihar's power sector are wary of the financial health of BSEB, which is bleeding Rs 2 crore a day."We are awaiting the RFP from Amalgamated Transpower and it should reach us soon. In principle they have agreed to invest in the project," Upadhayay said. The Rs 2000-crore project is located near the steel city of Jamshedpur. When the plant comes up, it will take up the 200mw load now being delivered by the BSEB, he said. "We had to force the BSEB to accept to these terms or else we would have lost this project," Upadhyay said. Bihar officials are here to garner investments for more than 25 projects in all sectors at the two-day Indo-US Joint Business Council meeting that opened today.

Other projects which are on `sale' are the Patna-Bihta thermal power project (2x67.5mw), combined with privatisation of distribution at Patna and the Tenughat thermal stage II (3x210mw).

When this correspondent visited the Bihar camp at the meet it was learnt that much interest was shown by American investors provided the Bihar government comes out with a new power policy. The investors want assured returns and a stable power purchase agreement. The investors also want a long-term lease rehabilitation and transfer of projects with a minimum period of 15-20 years.

Industry commissioner G S Kang said policy problems are being faced by all states because of political implications. "If a clearcut policy is framed, it will bring more investment into the power sector," Kang said. Despite all this, the Bihar camp was upbeat as the Central Electricity Authority last week cleared a 2x210mw project at Jojobera by the Jamshedpur Power Corporation Ltd. "This will open the gateway for other private power projects to come into Bihar," the energy secretary said. The government has also given a no-objection certificate to Usha Martin Industries Ltd to set up a 25mw captive power project at the Adityapur industrial estate at Jamshedpur, entailing a total investment of Rs 100 crore. Usha Martin has a wire rods plant there. For another another project -- Nabinagar thermal of 4x500mw -- a global tender has been floated and the last date for the submission of bids was December 3. The total investment expected in this project is Rs 10,000 crore. "We are anxiously awaiting the opening of the tender boxes and we sincerely hope that the offers will be exciting," the energy secretary said.

The state cabinet has given the go-ahead to the energy department for this project, which may later include a transmission setup. "Power Grid Corporation on behalf of the ministry of power and the Union government has invited global bids," Upadhyay said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.