Torrent reportedly outbids Mukesh Ambani's Reliance for power project by quoting lowest price

As Anil Ambani's Reliance Power posts deeper losses, Mukesh Ambani's Reliance Industries has been eyeing clean energy and power generation. As Torrent Group is battling it out to acquire Reliance Capital formerly led by Anil Ambani, its power arm is competing with Reliance Industries for a gas-based power project.

Torrent Power has reportedly outdone Mukesh Ambani's conglomerate to clinch a government power supply deal.

Torrent outbids Reliance

Torrent quoted the lowest price at Rs 13.70 per unit for electricity to be supplied for 77 days in April and May, from two gas-based facilities in Gujarat.

Reliance on the other hand, had quoted more than Rs 20 per unit, and may not get the contract which is yet to be awarded.

Although Reliance's price is higher it is offering to supply 1,010 megawatts, while Torrent quoted its price for 770 megawatts.

Government trying to prevent power cuts

In the current scenario, Torrent is likely to bag the government's deals for 1,100 megawatt power, while the NTPC's arm NVVM had invited bids for 5,000 megawatt supply.

It will buy power from the supplier and then sell it in spot markets as demand for electricity goes up during the summer.

The efforts to avoid power cuts in India will be aided by resources from a Power System Development Fund.