US power major to invest in Bihar

The AES Corporation has submitted a proposal to State Industrial Promotion Board (SIPB) for setting up the thermal power plant at Jagidishpur in Bhagalpur district, Principal Energy Secretary Ravikant told PTI here.

He said AES (India) Pvt Ltd has submitted a letter of 'expression of interest' (EOI) to the SIPB for setting up the plant with an investment of around Rs 8,000 crore.
In its offer letter to the SIPB, the US energy giant said that if the company was allowed to set up its power generating unit, the state government could expect foreign direct investment (FDI) of up to USD 500 million (around Rs 2,300 crore).

AES Corporation, which is listed on the New York Stock Exchange (NYSE), is engaged in power generation and distribution across the world.

AES was presently operating a 2X210 MW coal plant in a joint venture with the government of Orissa and was also executing coal power projects in Chhatisgarh.The Energy secretary said AES Corporation's proposal submitted to the SIPB was being processed.

AES in its proposal submitted to the SIPB had made an offer that the "state will have the first right to buy 25 per cent of power from the project at regulated prices".The energy secretary made it abundantly clear that the AES Corporation would have to arrange for the land and coal linkage for setting up its power plant in the state.