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Decision on Sasan likely on Thursday

business Updated: Jun 21, 2007 01:51 IST
M Rajendran
M Rajendran
Hindustan Times
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The empowered group of ministers looking into the 4,000 megawatt Sasan power project will take a decision on Thursday after having failed to arrive at a view on the matter at a meeting on Wednesday.

The power project is in limbo after allegations of misrepresentation by the lead bidder Lanco Infratech surfaced. Lanco was alleged to have used the financial credentials of its foreign partner Globeleq Plc’s to win the bid.

The ministerial group has to decide on the issue before July 5, the last day for bids to remain valid. The bids were initially valid for 180 days from the date of auction, but a 30-day extension has been granted in this case with the consent of the bidders.

“If no decision is taken by July 5, Power Finance Corporation (which conducted the auction and is the implementer of the government’s vaunted ultra-mega power project policy) will have to return the Rs 120 crore bond money to the bidder (Lanco Infratech). Further, the auction gets cancelled automatically,” said a senior power ministry official.