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Ernst and Young seeks report from Lanco on low bid

Ernst and Young seeks report from Lanco on low bid
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First Published: Mon, Apr 16 2007. 03 02 PM IST
Updated: Mon, Apr 16 2007. 03 02 PM IST
PTI
New Delhi: Fate of the Sasan ultra mega power project is likely to be decided within a month even as project consultant Ernst & Young (E&Y) has sought clarifications from developer Lanco Infratech on its “shockingly” low bid.
“E&Y has sought clarifications from Lanco on few issues such as the low bid of Rs1.19 a unit, which had shocked many people. After E&Y submits its report, a decision will be taken on whether there will be a rebid or not,” Power Secretary Anil Razdan said.
Razdan said Power Finance Corporation, the nodal agency for conducting bidding of all ultra mega power projects, had sought a report from E&Y on the issue. Following this, E&Y has asked for clarifications from the winning consortium. He said the low bid had also raised doubts on how the developers would implement the project.
The 4,000 MW Sasan project, to be set up in Madhya Pradesh at an estimated cost of Rs 20,000 crore, ran into rough weather after Lanco’s partner Globeleq of Singapore made an exit from the joint venture and sold its 70% stake to Lanco and Jindal Steel and Power Ltd.
In December last year, Lanco-Globeleq had outbid several high-profile competitors, including Reliance Energy, to win the project with a tariff bid of Rs1.19 per unit.
However, allegations have been raised over the past couple of months over Lanco and Globeleq misleading PFC and submitting false information regarding financial and technical capabilities.
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First Published: Mon, Apr 16 2007. 03 02 PM IST
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