Gujarat Industries Power Company (GIPCL) today said it has cancelled LoIs with Lanco Infratech (LITL) for implementing two 300 MW projects as the EPC firm failed to furnish 10% contract performance bank guarantee.
The Letter of Intents (LoIs) were issued to Lanco on June 1 for implementing 2 X 300 MW lignite-based projects adjacent to GIPCL's existing Surat Lignite Power Plant (SLPP) on EPC basis.
"Due to the inability on the part of LITL to furnish the required 10% contract performance bank guarantee as per the stipulated time period and thus committing breach and violation of EPC tender conditions, GIPCL has cancelled LOIs for EPC contracts to LITL in respect of implementation of 2 x 300 MW lignite-based expansion power project," GIPCL said in a BSE filing.
The project was expected to be commissioned by end of third quarter of 2016-17.
