Anil Dhirubhai Ambani Group’s Reliance Energy Ltd (REL) lowered its bid to Rs1.19 per unit for the 4,000MW ultra mega power project at Sasan (Madhya Pradesh), matching the previous winning bid and getting into the driver’s seat on the Rs16,000 crore project.
The re-bid was called after Lanco Infratech Ltd and Globeleq Singapore Pte.’s winning bid was disqualified by a group of ministers on 25 July for violating terms of the contract.
“All the three bids have been submitted and their evaluation has been completed,” said a person associated with the process who did not wish to be named. “REL’s bid is the lowest and it has matched the Rs1.19 per unit tariff” from Lanco and Globeleq.
This person also said that other previous bidders, NTPC Ltd and Jaiprakash Associates, submitted the same amounts they had originally bid.
It was unclear late on Sunday as to why NTPC and Jaiprakash bid amounts that they knew were well behind REL’s original bid of Rs1.29 a unit. Senior NTPC executives declined to comment. An REL spokesman also declined to comment.
In the original bids, Tata Power Ltd had quoted Rs1.41, Jaiprakash Associates came in with Rs1.65 and NTPC bid Rs2.12, followed by Larsen & Toubro Ltd at Rs2.25 per unit. The other bidders for the project were Jindal Steel Ltd, Sterlite Industries Ltd, Torrent Power Ltd and Essar Power Ltd.
The board of Sasan Power Ltd., the special purpose vehicle formed for the project, had called for fresh bids from REL, Jaiprakash and NTPC as these were the only three companies who had extended the validity of their bid bonds for the project through 4 August.
“We do not see much upside for REL,” from the lower bid, said Abhishek Puri, an analyst with ASK Securities.