Parekh panel fails to find solution for Sasan dispute

Parekh panel fails to find solution for Sasan dispute
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First Published: Sat, Mar 24 2007. 01 11 AM IST
Updated: Sat, Mar 24 2007. 01 11 AM IST
The uncertainty surrounding the Sasan power project was not resolved by the evaluation committee, headed by HDFC chairman Deepak Parekh, that met on Friday. “The meeting was inconclusive and no decision was taken,” said a senior executive of Power Finance Corporation (PFC), requesting anonymity.
The 4,000MW ultra-mega power project, estimated to cost Rs18,000 crore, was awarded to Lanco Infratech Ltd and Globeleq Singapore Pte, a subsidiary of Houston-based Globeleq. However, Globeleq decided to sell some global assets, and Lanco and Jindal Steel and Power Ltd acquired its stake in Sasan. This led to strong protests from some bidders who felt the bid criteria had been violated. A meeting of the board of Sasan Power Ltd earlier this week had been unable to resolve the dispute and instead turned it over to the Parekh committee.
Meanwhile, Lanco continued to remain optimistic. “I do not expect the government to backtrack on it as they are very serious about implementing the project,” said Lanco chairman L. Madhusudhan Rao.
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First Published: Sat, Mar 24 2007. 01 11 AM IST