Israel Electric Corporation (IEC) has joined hands with DS Constructions to bid for the 4,000 MW Krishnapatnam ultra mega power project in Andhra Pradesh involving an investment of Rs.16,000 crore.

The joint venture companies intends to incorporate a special purpose vehicle (SPV) for the project and proposes to put in Rs.5,000 crore as equity capital. IEC will hold a minimum of 26 percent stake in the JV.

IEC may have an option to increase its equity stake in the company after the award of the project. Besides equity participation, the Israeli firm will also provide technical assistance to the project. There is also a possibility to include a third JV partner for the project.

The consortium has already submitted the request for quotation (RfQ) for the Krishnapatnam project and plans to bid for some of the other ultra mega power projects when they come up for bidding.

Also See:

Krishnapatnam Mega Power project: 17 RfQs submitted (04-Oct-06)