Smelling rat in national solar mission, the Centre for Science and Environment (CSE) on Wednesday alleged that Lanco Infratech flouted rules for bagging projects under the mission, a charge company refuted.
The non-government organisation (NGO) claimed that Lanco created front companies and got about nine solar power projects having a total capacity of 235 MW of the total bidding for 620 MW in the first phase of the mission. Of the 34 projects allocated, the CSE claim was regarding nine projects.
As per the ministry of new and renewable energy (MNRE) guidelines for allocation of projects, no company was allowed to bid for more than two projects. But, CSE claimed that Lanco bagged additional seven projects by creating frontal companies, one of which was sons of a Lanco employee as board of directors.
MNRE secretary Girish Pradhan said the ministry was getting the facts verified. “If there is any violation of the guidelines strict action will be taken,” he said.
In a statement, Lanco said the allegations were not cross checked with the company and wrongly perceived. “Equity participation of Lanco is within the permissible level allowed and is in line with the RFP (Request for Proposal) documents, and these facts were also reported in Lanco Infratech Limited Annual Report. There is no illegality involved as reported by CSE,” the statement read.
“Based on the guaranteed feed-in tariff being paid to solar projects in the first phase, the company will get assured revenue of Rs 13,000 crore from these projects over a period of 25 years,” CSE said.