The Hindu Business Line : Reliance Power set for Sasan

New Delhi, July 30 Reliance Power Ltd, a subsidiary of Reliance Energy Ltd (REL), is on course to bag the 4,000-MW Sasan Ultra Mega Power Project, after the firm matched the tariff bid of the original winner of the project — the Lanco Infratech-Globeleq Singapore Pte. combine.

“The revised bid of Reliance Power Ltd quoting levelised tariff of Rs 1.19616 per unit of power was the lowest of the three bids we received. The Empowered Group of Ministers (EGoM) has advised that the procurer (Sasan Power Ltd) should consider taking immediate action to issue the letter of intent to the lowest bidder,” the Union Power Minister, Mr Sushilkumar Shinde, told newspersons here after the EGoM meeting.

Reliance Power Ltd was originally the second-lowest bidder for the Rs 20,000-crore power project at Rs 1.29 per unit, behind the Lanco-Globeleq consortium, when the tariff-based bidding process was carried out in December 2006.

The coal-based project’s handover to the winning consortium, however, got derailed following the sale of 100 per cent of Globeleq Singapore by its parent, Bermuda-based Globeleq Ltd in February 2007. Jindal Steel & Power Ltd and Lanco Infratech’s Mauritius-based holding company jointly acquired the 100 per cent stake in Globeleq Singapore — a move that was challenged by rival bidders for the project.

Subsequently, Power Finance Corporation (PFC), which conducted the bidding process on behalf of the Government, and bid consultant Ernst & Young raised the issue of Lanco-Globeleq having “misrepresented” information pertaining to technical and financial capability claims furnished by the combine at the bidding stage.

The Empowered Group of Ministers, headed by Mr Shinde, last week declared Lanco’s bid as invalid. Following directions from the EGoM, Sasan Power Ltd — the special purpose vehicle set up by PFC to kick start the project — had asked the three bidders left in the fray (Reliance Power, NTPC Ltd and Jaiprakash Associates) to submit fresh bids.

According to sources, Jaiprakash Associates and NTPC, however, did not change their bids from the original Rs 1.65 and Rs 2.12 per unit, while Reliance Power lowered its bid to match the Lanco-Globeleq combine’s original quote for the project.

“…We look forward to building this world class infrastructure facility. The Rs 20,000-crore investment in the Sasan project will contribute to accelerating India’s economic growth by substantially raising the current generation capacity,” the REL Chairman, Mr Anil Ambani, said in a statement.

REL, currently, has an installed capacity of 941 MW of electricity through its power stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.

REL shares closed Monday’s trading day up 2.20 per cent at Rs 780.25 per share on the BSE, even as the 30-share BSE-Sensex closed 0.2 per cent up at 15,260.91 points. The 52-week high for the scrip stood at Rs 817 per share, while the 52-week low was at Rs 436.10 per share.

No inconsistencies in our bid, says Lanco Chairman: Economy Page

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