Subhash Narayan NEW DELHI RELIANCE Power has zeroed in on Shanghai Electric, a $7-billion electrical and engineering equipment company of China, for sourcing primary equipment for Sasan ultra mega power project (UMPP). The Chinese major, which is planning to enter India in a big way, will supply boilers, turbines and generators (BTG) to the Madhya Pradesh-based UMPP. The supply contract is likely to be signed in the next few days. The finalisation of this contract is important as this would kick off the construction of the power plant. Reliance Power is in talks with leading Chinese export credit agencies, such as China Exim, Sinosure and China Development Bank, to part fund its purchases. The EPC work of the project would cost an estimated Rs 12,000 crore. Reliance's Sasan UMPP along with Tata Power's Mundra power project have been put on the fast-track by the government to meet the growing demand in the country. In fact, the power ministry has asked the developers of both the projects to commission at least one unit of the projects during the Eleventh Plan by 2012. Reliance Power had received bids from large equipment manufacturers like BHEL, Ensaldo of Italy, Power Machines from Russia and Chinese firms Dong Fang Electric and Harbin. According to sources, Shanghai beat the competitors both on the price front and on the delivery schedule. Shanghai Electric, which has a manufacturing capacity of 33,000 mw annually in China, will supply six units of 660 mw each. The first of these units will be delivered by December 2011. Shanghai Electric, which has till now set up installed capacity of almost 250,000 mw in China, is already supplying equipment to Turkey and Indonesia as part of its strategy to develop business abroad. It is also associated with a couple of other Reliance Power projects.