The fate of the Sasan ultra mega power project hangs in fire as Power Finance Corporation, the nodal agency for UMPPs, is examining the change in ownership of Globeleq Singapore after it was acquired by Lanco and JSPL.
Globeleq has announced that it has sold its entire 70 per cent stake in the Sasan project to Lanco Infratech and Jindal Steel and Power Ltd (JSPL).
"We have issued a letter to Globeleq asking them to clarify their position in the Sasan project. We will wait till February 28 to hear from them before taking a stand," a PFC official said.
February 28 is the last date for submission of the Letter of Acceptance. The official said that even a change in ownership of Globeleq Singapore does not impact Sasan as long as the company is involved in the project. "There is a problem only if Globeleq is totally out of the project," he said.
Asked about the implications of Globeleq having no role in the Sasan project anymore, the official said: "In that case, Lanco is out of Sasan."
Globeleq yesterday announced that it has sold its entire holding in Globeleq Singapore Pte Limited to Prince Stone Investments Limited and Jindal Steel & Power Limited.
The UK-based power investment firm had partnered Lanco Infratech in the Sasan project through its holding company Globeleq Singapore Pte Limited. Prince Stone Investments Limited is the holding company of Lanco Infratech Limited.
Globeleq's selling of its equity holding in Sasan has raised questions on the validity of the award of the ultra mega power project to Lanco-Globeleq. More PTI SRS KM 02141506 DEL It remains to be seen whether the government will accept the change in ownership of the lead developer of the project at this stage.
A PFC official had earlier said that the terms and conditions for the project are applicable only if they (Lanco and Globeleq) are together.
"The project is awarded to a consortium and in case Globeleq dilutes its stake below 51 per cent then they are out and the project will go to L2," the official said.
"A change in composition of consortium will be permitted only once, provided the lead member is not being proposed to be changed," he said.
According to the new ownership structure, Lanco would have a total stake of 72 per cent in the Sasan project while Jindal would initially hold 28 per cent with the option to raise it to 49 per cent later.
"Globeleq Singapore Private Limited will not retain interests in any Globeleq power businesses or projects," Globeleq has said.
Globeleq along with its Indian partner Lanco Infratech had recently won the 4,000 MW Sasan ultra mega power project quoting a tariff rate of Rs 1.196 per unit. JSPL is a pre-qualified bidder for the Sasan UMPP.
As the lead promoter, Globeleq had to invest Rs 2,240 crore, while Lanco's share stood at Rs 960 crore in the Sasan project.
Globeleq has announced that it has sold its entire 70 per cent stake in the Sasan project to Lanco Infratech and Jindal Steel and Power Ltd (JSPL).
"We have issued a letter to Globeleq asking them to clarify their position in the Sasan project. We will wait till February 28 to hear from them before taking a stand," a PFC official said.
February 28 is the last date for submission of the Letter of Acceptance. The official said that even a change in ownership of Globeleq Singapore does not impact Sasan as long as the company is involved in the project. "There is a problem only if Globeleq is totally out of the project," he said.
Asked about the implications of Globeleq having no role in the Sasan project anymore, the official said: "In that case, Lanco is out of Sasan."
Globeleq yesterday announced that it has sold its entire holding in Globeleq Singapore Pte Limited to Prince Stone Investments Limited and Jindal Steel & Power Limited.
The UK-based power investment firm had partnered Lanco Infratech in the Sasan project through its holding company Globeleq Singapore Pte Limited. Prince Stone Investments Limited is the holding company of Lanco Infratech Limited.
Globeleq's selling of its equity holding in Sasan has raised questions on the validity of the award of the ultra mega power project to Lanco-Globeleq. More PTI SRS KM 02141506 DEL It remains to be seen whether the government will accept the change in ownership of the lead developer of the project at this stage.
A PFC official had earlier said that the terms and conditions for the project are applicable only if they (Lanco and Globeleq) are together.
"The project is awarded to a consortium and in case Globeleq dilutes its stake below 51 per cent then they are out and the project will go to L2," the official said.
"A change in composition of consortium will be permitted only once, provided the lead member is not being proposed to be changed," he said.
According to the new ownership structure, Lanco would have a total stake of 72 per cent in the Sasan project while Jindal would initially hold 28 per cent with the option to raise it to 49 per cent later.
"Globeleq Singapore Private Limited will not retain interests in any Globeleq power businesses or projects," Globeleq has said.
Globeleq along with its Indian partner Lanco Infratech had recently won the 4,000 MW Sasan ultra mega power project quoting a tariff rate of Rs 1.196 per unit. JSPL is a pre-qualified bidder for the Sasan UMPP.
As the lead promoter, Globeleq had to invest Rs 2,240 crore, while Lanco's share stood at Rs 960 crore in the Sasan project.
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