The Hindu Business Line : New panel to probe into Sasan power project bid row

The Power Ministry had started examining the bidding complaints involving the power project after the CVC raised questions about the entire tendering process.

Our Bureau

New Delhi, Dec 27 The controversy surrounding the country’s first Ultra Mega Power Project (UMPP), following a botched-up bidding exercise, refuses to die down. After a series of probes, the Power Ministry is now in the process of constituting a new “Independent Committee” to investigate complaints regarding “irregularities” during the award of the Rs 16,000 crore Sasan Ultra Mega Power project contract.

Nodal agency

This new panel will look into the issue of irregularities against those who supervised the bidding process for the project, including the top brass of State-owned Power Finance Corporation (PFC), the nodal agency for the UMPPs, a top Government official said.

Scrutinising complaints

“The Ministry of Power, on the advice of the Central Vigilance Commission (CVC), is in the process of constituting an independent committee to look into the complaints regarding the Sasan bidding irregularities. The Ministry had earlier sent its replies to the CVC on April 7, and then on September 2, with regard to specific complaints against the top brass of PFC,” the official said.

The Power Ministry had started examining the bidding complaints involving the power project after the CVC raised questions about the entire tendering process. A consortium comprising Lanco Infratech and Globeleq Singapore Pte, a subsidiary of Houston-based Globeleq, had initially won the bid to develop the project. Subsequently, the parent firm of Globeleq Singapore sold its stake in the consortium back to Lanco and another losing bidder, Jindal Steel and Power Ltd.

After being initially awarded the Sasan project, the Lanco-Globeleq bid was subsequently disqualified. Thereafter, the second lowest bidder, Reliance Energy – now rechristened Reliance Power – was given a chance to match the winning bid and then awarded the controversial project.

Specific queries

In its queries regarding the bidding process, the CVC had specifically asked for a probe into the role of Ernst and Young, the private consultant for the project, various committees and the board of Sasan Power Limited, which was a special purpose vehicle of PFC floated for the project.

Fall-out

As a direct fall-out of the Sasan bidding imbroglio, the Centre had also constituted a committee, headed by the Power Secretary, Mr Anil Razdan, and with members from the ministries of law and justice, and corporate affairs, to streamline the bidding process for future projects. The Sasan project was the first in a series of nine UMPPs that were to be set up during the 11th and 12th Plan periods.

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