Vijayawada: Andhra Pradesh Power Generation Corporation (APGENCO) is likely to go for international competitive bidding for identifying the agency to commission two more units of hydroelectric power in the Lower Sileru powerhouse. The officials said the tender documents, which were sent to judicial preview for clearance last week, are expected to be floated this month.
Almost eight months after the government gave administrative sanction to two units of 115 MW each, APGENCO is in the process of initiating the bidding, including reverse auction, for the two units which will be added to the existing four (with a cumulative capacity of 460 MW). As per the draft tender documents, the two units will be taken up on Engineering Procurement Construction (turnkey) basis.
The estimated value of the project, which is Rs 384 crore (excluding GST and labour cess), is likely to go up to Rs 500 crore, the officials said. APGENCO aims to have the project commissioned within 24 months from the day the contract is awarded.The powerhouse already has four units—commissioned in March 1976, October 1976, November 1977, and August 1978—running, and preliminary work for the commissioning of two more units has also been completed.
The balance works will be completed now. The officials added that the project would be cost effective as no major infrastructure creation is necessary.
“WAPCOS, which was engaged to prepare a detailed project report, suggested four alternatives in total in November last year. After deliberation, we chose the one which is financially prudent and effective.
The cost of commissioning is also much lesser compared to a Greenfield project. As water is available almost throughout the year, we can harness hydel energy, especially to meet the peak demand,” a senior official explained. The primary source for the powerhouse is Balimela Reservoir.
‘Project cost effective, infrastructure in place’
Officials claim that the project in Sileru complex is cost effective as no major infrastructure creation is necessary. “As water is available almost throughout the year, we can harness the hydel energy, especially to meet the peak demand,” they say.