Govt keeps Lanco waiting | india | Hindustan Times
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Govt keeps Lanco waiting

india Updated: Aug 01, 2006 01:23 IST

THE STATE Government is dilly-dallying in clearing the way for a Hyderabad based company to set up the long-pending 1,000 MW Anpara C thermal power project. This is happening at a time when power demand-supply gap in the State is widening.

The company, Lanco Kondapalli Power Pvt Ltd, qualified after the final bid around two months ago. Ever since, it has been making requests to the authorities to expedite affairs so that it may start setting up the project.

In a recent letter, the company once again requested the Utpadan Nigam to speed up the matter.  “Please refer to the Request for Proposal (RFP) submitted by various bidders on June 6, 2006 for setting up 2x500 MW Anpara C Project, wherein the Lanco Kondapalli Power Pvt Ltd had emerged as the lowest bidder.

We once again request you to expedite the issue of “Letter of Acceptance” and send us advance communication to obtain performance bond from our bankers as per the RFP requirement,” said the company in its July 26 letter to UP Utpadan Nigam chief general manager RB Gupta.

Three private companies — Reliance Energy Ltd (REL), Essar Power and Lanco Kondapalli — qualified for the financial bid. But, it was Lanco Kondapalli that emerged as the lowest bidder on June 6 when the bids were opened. The tariff  for the electricity to be generated by the Anpara C quoted by the company was found to be the lowest, followed by those of the REL and Essar.

As per a time-table chalked out by the UP Electricity Regulatory Commission (UPERC), the Utpadan Nigam had to offer the letter of intent (LOI) to the lowest bidder by June 23. However, the matter has been kept pending since the bids were opened. The matter is now awaiting clearance from the Utpadan Nigam Board. Once the Board of Directors clears Lanco’s claim, it will be taken to the Energy Task Force and then put up to the Cabinet for final approval.

Sources said the Government was expecting the REL to bag the prestigious contract for the Anpara C. But it could not do so. Hence, all the problems now, they claimed.

Principal Secretary UPPCL/Utpadan Nigam chairman, AK Khurana said he had not yet received any such letter from Lanco Kondapalli. “Any way, we will take a final decision after due deliberations,” he said.