Indiabulls Power Services, a power sector company promoted by Indiabulls and owned by Indiabulls Real Estate, has bagged a contract to develop a 1,600-MW Bhaiyathan power project, outbidding close contenders GMR Group and Sterlite Industries.

The company has beaten two other bidders for the right to build the coal-based facility in the eastern state of Chhattisgarh, The winning bid for sale of 65% power produced by the plant was for 81 paise per kWh.

While, the next two bids were at 88 paise per kWh from the Vedanta Group-promoted Sterlite Industries and  88 paise per kWh from GMR. Reliance Power and Tata Power were also present in the race.

The pit-head project, to be set up on built-operate-own- transfer basis by the company, has been scheduled to be completed in three years.

Under the deal, the company will sell 65% of the power to the government at Rs 0.81 per unit and remaining 35% of the power to private consumer and industries at Rs 4 per unit.

Apart from these, Indiabulls Power has also won the right to a 350 million ton coal mine. The company, which recently raised USD 399 million from private equity firm, Farallon Capital Management LLC and Mittal is setting up 4,000 megawatt power plants in two sites in the western state of Maharashtra.