The Hindu Business Line : PFC seeks clarification from Lanco-Globeleq

Bidding woes
The queries relate to technical and financial capability of the consortium's lead member Globeleq Singapore Pte Ltd.
Lanco was given time till Saturday to respond.
Final decision on project to be taken by evaluation committee headed by Mr Deepak Parekh.

New Delhi April 1 Power Finance Corporation has shot off a fresh letter to the Lanco-Globeleq combine, seeking clarification from the consortium regarding certain submissions made in its confidential bid document for the proposed 4,000-MW Sasan Ultra Mega project.

The queries, specifically relating to technical and financial capability of the consortium's lead member Globeleq Singapore Pte Ltd, are based on information forwarded to PFC by a third-party, sources said.

The queries sought in the letter, written on March 30, seek information on certain discrepancies in technical and financial capability claims furnished by the Lanco-Globeleq combine in its Sasan bid document (Annexure-8 of the Request for Qualification) and submissions separately made by Globeleq Singapore Pte with certain authorities in Singapore.

Lanco had been given time till Saturday to respond to the queries, sources said. A meeting of the Sasan Power Ltd (a PFC subsidiary) is likely to be held by Wednesday, where Lanco is likely to be given a chance to clarify its stand.

The project, estimated to cost around Rs 16,000 crore, was originally awarded to a consortium of Lanco Infratech Ltd and Globeleq Singapore Pte Ltd in December. However, the coal-based project plunged into controversy following the sale of 100 per cent of Globeleq Singapore by its parent, Bermuda-based Globeleq Ltd (a unit of UK's CDC Group Plc) in February. Jindal Steel and Power Ltd and Lanco Infratech's Mauritius-based holding company together acquired the 100 per cent stake in Globeleq Singapore — a move that has been challenged by rival bidders for the project.

A final decision on the future course of action on the Sasan project is expected to be taken by an apex evaluation committee headed by Mr Deepak Parekh. The Sasan Power board, which met here earlier last week, had extended the terms of reference of the evaluation committee to empower it to decide on the future course of action on the Sasan power project. The committee's meeting is likely to follow the Sasan Power Ltd meeting scheduled for this week.

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