The Hindu Business Line : Lanco looks at other ultra power projects

Hyderabad, July 30 Lanco Infratech Ltd, the Hyderabad-based diversified group, today said it is now looking beyond the Sasan ultra mega power project (UMPP), which it lost to Reliance Energy due to the disqualification. .

The Chairman of Lanco, Mr L. Madhusudhan Rao, said: “We continue to hold that we had the necessary qualifications and that there were no inconsistencies in the bid procedure or for that matter its contents, including issues relating to partner Globaleq. All the necessary information was provided during the bidding process and subsequently during enquiry. However, as it transpires, consultant Ernst & Young looked beyond the information we submitted.

“All information was not factored in. It has been seven months since we won the bid. And, since then, the entire process has been bogged down. Necessary information was provided to the Ministries of Finance, Law and later to the Empowered Group of Ministers (eGoM). While we believe that we did not violate any norms, we have decided to abide by the decision of the eGoM in the best interest of the company and now are looking at other UMPPs.”Mr Rao said Lanco created a new benchmark on the tariff of Rs 1.19 per unit . “It is this revolutionary tariff we introduced to the country that Reliance Energy has now accepted. In fact there was scepticism about the aggressive tariff. But our stand is now vindicated.”

Excerpts from the interview:

When you believe that you had a good case, why are you not contesting in a court of law?

Lanco decided it is in best interest to look beyond Sasan. We have lost time and believe there are immense opportunities where Lanco can make a difference. In spite of an extremely contestable case, we decided to abide by the eGOM decision.

Will you get back Rs 120 crore deposit as part of the Sasan bid?

Yes, we will get the amount back.

What next for Lanco?

Lanco is actively in pursuit of other UMPPs and monitoring the progress of power projects in Haryana, Punjab, Madhya Pradesh, Maharashtra and Karnataka. We are on course to the projected 15,000 mw capacity creation by 2015 and will simultaneously pursue other infrastructure projects such as roads, real estate, etc.