The Globeleq-Singapore and Lanco combine, which bagged the 4,000 mw Sasan ultra mega power project, is learnt to have lost the contract following discrepancies in its bid.
The consortium had bagged the project with an aggressive tariff bid of Rs 1.19 per unit, competing against major power players like Tata Power, NTPC, Reliance Energy, Jindal Steel & Power, and L&T.
The matter was discussed by the evaluation committee, which is learnt to have concluded that the Globeleq-Lanco consortium could not be awarded the project any more. The fate of the project now looks uncertain as the government will have to take a call on whether it should call for a rebid or consider another bidder.
Sources say the government may prefer a re-bid. What remains to be seen is whether the project will manage to attract such competitive tariffs again.
The final power purchase agreement with the consumer states for the project, which would have sealed the deal, is yet to be signed. A formal decision, however, is yet to be taken by the Sasan Power Board. Sasan Power officials and members of the evaluation committee, headed by HDFC chairman Deepak Parekh, declined comment on the development.
The evaluation committee’s conclusion follows the views of attorney general Milon Banerjee, who was not in favour of giving the bid to the consortium and had called for a rebid.
Questions over the technical and financial capability of the consortium were raised after Globeleq Singapore was sold by parent company Globeleq. Globeleq is an arm of DFID, a UK government agency for investments in the third world. Globeleq Singapore was bought over by Prince Stone, the holding company of Lanco and JSPL.
When asked about the evaluation committee’s deliberations, Lanco group chairman Madhusudhan Rao said, “I am not aware of any such development. As a matter of fact, no decision has been taken and I am not aware of a formal meeting being held. I understand that it was an informal discussion.” It may be noted that members of the evaluation committee were formally called for the meeting on March 23 in the capital.
The rejection of the bid, if formalised, could come as a blow to power reforms and the government’s plans to install huge capacities. It also raises questions on the evaluation process as most of the alleged deviations in the Globeleq-Lanco bid were overlooked.
In December, the Sasan ultra mega power project was awarded to the Globeleq-Lanco consortium, which had the lowest tariff bid of Rs 1.19 per unit. Questions on the validity of the award were raised by some of the other qualified bidders, including Reliance Energy, which emerged as the second lowest bidder with a price of Rs 1.29 per unit.
Sources said that Reliance Energy has argued that as L2 it should be given the chance to develop the project. NTPC, which had one of the highest price bids, has said that the project should be re-bid as there has been a change in ownership. Tata Power is also believed to have met officials.
The consortium had bagged the project with an aggressive tariff bid of Rs 1.19 per unit, competing against major power players like Tata Power, NTPC, Reliance Energy, Jindal Steel & Power, and L&T.
The matter was discussed by the evaluation committee, which is learnt to have concluded that the Globeleq-Lanco consortium could not be awarded the project any more. The fate of the project now looks uncertain as the government will have to take a call on whether it should call for a rebid or consider another bidder.
Sources say the government may prefer a re-bid. What remains to be seen is whether the project will manage to attract such competitive tariffs again.
The final power purchase agreement with the consumer states for the project, which would have sealed the deal, is yet to be signed. A formal decision, however, is yet to be taken by the Sasan Power Board. Sasan Power officials and members of the evaluation committee, headed by HDFC chairman Deepak Parekh, declined comment on the development.
The evaluation committee’s conclusion follows the views of attorney general Milon Banerjee, who was not in favour of giving the bid to the consortium and had called for a rebid.
Questions over the technical and financial capability of the consortium were raised after Globeleq Singapore was sold by parent company Globeleq. Globeleq is an arm of DFID, a UK government agency for investments in the third world. Globeleq Singapore was bought over by Prince Stone, the holding company of Lanco and JSPL.
When asked about the evaluation committee’s deliberations, Lanco group chairman Madhusudhan Rao said, “I am not aware of any such development. As a matter of fact, no decision has been taken and I am not aware of a formal meeting being held. I understand that it was an informal discussion.” It may be noted that members of the evaluation committee were formally called for the meeting on March 23 in the capital.
The rejection of the bid, if formalised, could come as a blow to power reforms and the government’s plans to install huge capacities. It also raises questions on the evaluation process as most of the alleged deviations in the Globeleq-Lanco bid were overlooked.
In December, the Sasan ultra mega power project was awarded to the Globeleq-Lanco consortium, which had the lowest tariff bid of Rs 1.19 per unit. Questions on the validity of the award were raised by some of the other qualified bidders, including Reliance Energy, which emerged as the second lowest bidder with a price of Rs 1.29 per unit.
Sources said that Reliance Energy has argued that as L2 it should be given the chance to develop the project. NTPC, which had one of the highest price bids, has said that the project should be re-bid as there has been a change in ownership. Tata Power is also believed to have met officials.
