The Hindu Business Line : PMO seeks report from Ministry on Sasan imbroglio

New Delhi April 17 The Prime Minister's Office (PMO) has intervened in the Sasan Ultra Mega power bid imbroglio and has sought a detailed report from the Power Ministry on the hold-up in the showcase project's tendering process.

This comes in the wake of some Members of Parliament writing to the Prime Minister citing `anomalies' in the bidding process for the proposed 4,000-MW project.

An Additional Secretary in the Power Ministry has been entrusted with the task of preparing the PMO report, which is likely to be sent during this week. Separately, a Joint Secretary in the Ministry is preparing another report addressing queries raised by the Central Vigilance Commission on the bidding process.

A decision on the project is now expected once the report is submitted by the Power Ministry to the PMO. According to sources, a final decision on the bid is likely in about a month's time.

Slack tendering by the state-owned Power Finance Corporation — the nodal agency for conducting bidding of all proposed Ultra Mega projects — has forced a review of the Sasan award to the Lanco-Globeleq consortium on the grounds of alleged `misrepresentation' of information relating to the winning consortium's financial and technical capabilities to execute the project, official sources said.

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 last year. However, the coal-based project got mired in 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 was challenged by rival bidders for the project.

Clarifications sought

Subsequently, PFC sought clarifications from the Lanco-Globeleq combine on technical and financial capability claims furnished by it in the Sasan bid document and submissions separately made by Globeleq Singapore Pte with certain authorities in Singapore, based on information forwarded to PFC by a rival bidder.

Project consultant Ernst & Young, on PFC's behest, has recently sought a fresh set of clarifications from Lanco Infratech on its financials.

The Lanco Group has, however, asserted that Globeleq Singapore used its parent's qualification (UK's Globeleq Ltd) as per the bid format and there was no misrepresentation in the information provided them.