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Saasan Power’s new move

NEW DELHI: Sasan Power Limited, the special purpose vehicle set up by the Power Finance Corporation (PFC) to execute the 4,000-MW Sasan Ultra Mega Power Project in Madhya Pradesh, has been asked by the Empowered Group of Ministers (EGoM) to take up negotiations with Reliance Energy Limited (REL) to ascertain if the company could match the Rs. 1.19 per unit bid of Lanco Infratech for the 4,000 MW project, after the EGoM scrapped the award to the Lanco Infratech consortium, sources in the Power Ministry said.

Sources in the PFC said Sasan Power proposed to invite REL representatives for talks on the issue before deciding whether the project should be put for re-bidding or should be awarded to the second lowest bidder, in this case REL.

The sources said that according to tender norms the second lowest bidder would be called to take up the project. The PFC is expected to submit its findings to the EGoM before it meets to decide on the final fate of the project.

There are three valid bidders — Reliance Energy at Rs. 1.29 a unit, JP Associates at Rs. 1.65 and NTPC at Rs. 2.13. It is learnt that the NTPC has already ruled out bringing down its bid for the project, asserting that any further reduction would make the whole project ‘uneconomical’ and unviable to execute. However, it is learnt that NTPC would push for total ‘re-tendering’ of the entire project citing certain norms laid down by the Central Vigilance Commission in such cases. There is also no word on the issue of reimbursing the Rs. 120-crore guarantee money furnished by Lanoc at the time of bidding.

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