Sterlite Energy Ltd, a subsidiary of Sterlite Industries, has been awarded 2,000-MW Talwandi Sabo Thermal Power Project, for the next 25 years from Punjab State Electricity Board (PSEB).

The board has issued letter of intent to Sterlite Energy Limited for developing the Talwandi Sabo plant near Banwala village in Mansa.

Further PSEB has informed that four major power companies, including Sterlite Energy, Reliance Power, Devona Thermal Power and Infrastructure Ltd (part of India Bulls) and consortium of Lanco Infratech, Aban Offshore and OPG Energy had submitted their bids.

But, Sterlite was awarded the project for submitting the lowest price bid of Rs 2.86 per unit as levelised tariff among other companies in the battle.

PSEB would soon also sign a Power Purchase Agreement (PPA) with Sterlite Energy Limited in which the power board would source electricity from the company at an agreed rate.

The proposed power project, which would be developed on 2,113 acres of land on build, own and operate basis, expected that its first unit of the project would start working by December 2011.