The verdict is out. The joint bid by power company Globeleq Singapore and Indian infrastructure company Lanco for the 4000 MW Sasan power project has been rejected. The empowered group of ministers (E-GoM), constituted to take a call on the controversial bidding for the Sasan project, held that the Globeleq-Lanco (L1) bid was ‘void ab initio’, meaning null and void.
The Lanco group may challenge the decision. The matter became contentious when other bidders — Reliance Energy Generation and NTPC — raised objections to the bid once the lead bidding company, Globeleq Singapore, was sold off to Lanco Infratech and Jindal Steel and Power.
They also alleged that the consortium that won the bid had not met all the financial and technical parameters. Under political pressure, the government constituted a special E-GoM headed by power minister Sushilkumar Shinde to look into the charges.
Sasan Power (SPL) — the shell company overseeing the bidding process — has now been directed to take a decision and submit its recommendations to the E-GoM, keeping in mind the public interest and terms and conditions of the bid document, by August 4.
The validity of other bids stands to expire on August 4. ET first reported the discrepancies in the Globeleq-Lanco bid on March 13. When contacted, a Lanco group spokesman said: “It’s too early to react because we have not got an official communication yet.”
The E-GoM decision means that Globeleq-Lanco bid has to be declared invalid at the pre-qualification stage of bidding itself, even though the consortium was declared winner of the project and issued a letter of intent.
The Lanco group may challenge the decision. The matter became contentious when other bidders — Reliance Energy Generation and NTPC — raised objections to the bid once the lead bidding company, Globeleq Singapore, was sold off to Lanco Infratech and Jindal Steel and Power.
They also alleged that the consortium that won the bid had not met all the financial and technical parameters. Under political pressure, the government constituted a special E-GoM headed by power minister Sushilkumar Shinde to look into the charges.
Sasan Power (SPL) — the shell company overseeing the bidding process — has now been directed to take a decision and submit its recommendations to the E-GoM, keeping in mind the public interest and terms and conditions of the bid document, by August 4.
The validity of other bids stands to expire on August 4. ET first reported the discrepancies in the Globeleq-Lanco bid on March 13. When contacted, a Lanco group spokesman said: “It’s too early to react because we have not got an official communication yet.”
The E-GoM decision means that Globeleq-Lanco bid has to be declared invalid at the pre-qualification stage of bidding itself, even though the consortium was declared winner of the project and issued a letter of intent.
Via: The India Economic Times
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