On a built operate and own (BOO) basis, Nabha Power, a fully owned subsidiary of a Punjab State Electricity Board, has requested for bids from prospective investors to construct a coal based power plant with an expected contract capacity of 1,200 MW and an additional 10% at Nalash near Rajpura in Patiala district, Punjab.

The board, on basis of a competitive bidding as per the guidelines of the Indian government, would select a developer for the project. The RfPs and RfQs are to be submitted before August 31, 2009.

The Cabinet had given a prior approval to construct the Rajpura plant to Lanco Infratech. The coal-fired power plant would be built on 1,078.16 acres. PSEB has again started the bidding process, based on the instructions given by Power Systems Engineering Research Center (PSERC).