 "Gujarat Ind Power cancels LoIs issued to Lanco Infratech")
Gujarat Industries Power Company Limited (GIPCL) on Friday said that it had cancelled the LoIs (letters of intent) issued to infrastructure company Lanco Infratech Limited (LITL) for the implementation of a 2X300 Mw lignite-based expansion power project.
“Due to the inability on the part of LITL to furnish the required 10 per cent contract performance bank guarantee as per the stipulated time period and thus committing breach and violation of the EPC (engineering, procurement and construction) tender conditions, GIPCL has cancelled the LoIs for EPC contracts dated June 1, 2013,” the company said in a filing to the BSE.
Lanco Infratech’s EPC division had bagged this order valued at Rs 3,293.96 crore from GIPCL. The scope of the work includes off-shore supplies, on-shore supplies, civil and engineering works and on-shore services contract on an EPC basis. Currently, LITL has an operational capacity of nearly 4,000 Mw, while another 4,000 Mw is under construction.
“Due to the inability on the part of LITL to furnish the required 10 per cent contract performance bank guarantee as per the stipulated time period and thus committing breach and violation of the EPC (engineering, procurement and construction) tender conditions, GIPCL has cancelled the LoIs for EPC contracts dated June 1, 2013,” the company said in a filing to the BSE.
Lanco Infratech’s EPC division had bagged this order valued at Rs 3,293.96 crore from GIPCL. The scope of the work includes off-shore supplies, on-shore supplies, civil and engineering works and on-shore services contract on an EPC basis. Currently, LITL has an operational capacity of nearly 4,000 Mw, while another 4,000 Mw is under construction.