Bharat Heavy Electricals is the only bidder for National Thermal Power Corporation’s (NTPC) 1,000 MW Rihand thermal power project – stage II at Sonbhadra in Uttar Pradesh. The contract was expected to be awarded shortly. NTPC had floated the bids for the project in early 2000.

The Rs.4,000 crore project is proposed to be funded on a 70:30 debt-equity ratio. The debt component would be raised through external commercial borrowings of Rs.1,565 crore, while Rs.1,296 crore would be raised as rupee debt from domestic financial markets.

The project, which has received clearance from the Central Electricity Authority, is expected to be commissioned by 2005. Punjab would get 400 MW from the project, Uttar Pradesh would get 365 MW, Rajasthan 95 MW and Himachal Pradesh, 35 MW.

NTPC is negotiating with the state governments of Uttar Pradesh, Haryana and Punjab for the conclusion of power purchase agreements.