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Ultra-mega project bids delayed

The second round of bidding for seven out of the nine ultra-mega power projects is likely to be delayed by over six months, reports Samiran Saha.

business Updated: Sep 03, 2007 23:55 IST
Samiran Saha

The second round of bidding for seven out of the nine ultra-mega power projects is likely to be delayed by over six months, with the government planning to bring about certain amendments in the bidding rules.

Of the nine proposed plants, the government has already allocated Sasan ultra-mega power plant in Madhya Pradesh to Anil Ambani promoted Reliance Energy Ltd and Mudra in Gujarat to the Tatas.

New rules will include the cancellation of a bid the moment a consortium partner opts out of the consortium. The winning bidder will also need to have a “dedicated” coalmine for the project that it has won. It would not be allowed to divert coal to any other project.

Moreover, the government also proposes not to allow the winning bidder to sell any portion of the land allocated by the government, at a concessional rate, a government official said.

“New rules are being framed as the government wants “fool proof” systems in place to prevent re-occurrence of the Sasan incident, where Globeleq-Lanco’s bid for the Sasan project had to be declared null and void as the bidder misrepresented facts to win the project,” the official said.

In its bid to boost power generation and to meet power shortage in the country, the government has sought private participation for setting up nine ultra-mega power projects of 4,000 MW each in the country. The government plans to add 1,00,000 MW capacity during the Eleventh Five-Year Plan period.