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Sasan may reshape power project bids

business Updated: Jun 22, 2007 00:44 IST
M Rajendran

The empowered group of ministers, reviewing the 4,000 megawatt Sasan power project on Friday, failed to reach a decision and agreed to meet again on July 2.

The group, which started its review on Wednesday, on Thursday discussed the bid document and legal aspects of the power project, which is in limbo after allegations surfaced of misrepresentation by the lead bidder, Lanco Infratech. Lanco was alleged to have used the financial credentials of its foreign partner Globeleq Plc’s to win the bid.

According to sources in the Power Ministry, the issue on the table now is whether bid documents need to be amended for all ultra-mega power projects to allow any changes in foreign partners of the bidders which win these contracts.

At Thursday’s meeting, alleged misrepresentation Lanco and the change in partners were taken up. Opinions by Additional Solicitor-General B Datta and Attorney-General Milon K Banerji were discussed. Datta held that the Globleleq Singpore-Lanco consortium bid was valid, but Banerji felt the consortium could be disqualified.

The ministerial group comprises Finance Minister P Chidambaram, Power Minister Sushil Kumar Shinde, Minister for Law and Justice H R Bharadwaj, Deputy Chairman of the Planning Commission Montek Singh Ahuluwalia and Minister of State for Science and Technology Kapil Sibal. Sibal did not attend the meetings on Wednesday as well as Thursday.