The Hindu Business Line : Lanco denies misrepresentation in Sasan bid document

New Delhi April 2 The Lanco Group Chairman, Mr L. Madhusudhan Rao, has denied any misrepresentation in the Lanco-Globeleq combine's bid document submissions for the Sasan Ultra Mega power project.

"There has been no misrepresentation in our bid submissions... The bidding process cannot be annulled," Mr Rao told Business Line.

The combine would submit its point of view on the issue by Wednesday, in response to a query sent by Power Finance Corporation seeking clarification from the consortium regarding certain submissions made in its bid document for the proposed 4,000-MW project.

"We would send our response on the matter by tomorrow," he said.

Specific queries

On the specific queries raised by PFC in its letter sent on March 30 to the Lanco-Globeleq combine pertaining to information provided by the latter in Annexure 8 of its Request for Qualification submissions, Mr Rao maintained that he stood by the data provided by the consortium.

"The RFQ did not prescribe any separate format for providing information in case the bidding consortium members were using credentials of the parent company. So Globeleq Singapore relied on the financial and technical strength of the parent company Globeleq Ltd... There should be no ambiguity on the matter," he said.

PFC had asked the Globeleq-Lanco consortium to confirm "whether details furnished in Annexure 8 of the RFQ were those of Globeleq Plc or Globeleq Singapore."

The details

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.

Meanwhile, the BJP leader, Mr Mukhtar Abbas Naqvi, asked the Government for an examination of the bidding process to ensure there was no violation of norms.

In a letter to the Prime Minister, Dr Manmohan Singh, Mr Naqvi said the controversies around the selection of the consortium would lead to delays in implementing the mega project and sought a CBI enquiry.

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