REL asked to match Lanco bid for Sasan

The power ministry is considering asking Reliance Energy to match the price offered by the Lanco Infratech-Globeleq consortium for power from the Sasan ultra mega power project.

Reliance Energy, the next lowest bidder, had submitted a bid of Rs 1.29 per unit, against Lanco's Rs 1.19 per unit.

Power ministry sources said: "Power Finance Corporation, the nodal agency for the project, is reconsidering the earlier award of the project to Globeleq-Lanco Infratech in the light of Globeleq walking out earlier this month."

Yesterday, a board meeting of the Sasan Power Company had deferred handing over of the project to the Lanco Infratech-led consortium.

PFC Chairman V K Garg was not available for comment. When contacted, REL executives refused to comment on their company matching the Lanco bid.

Globeleq had sold its interest in Globeleq Singapore to a consortium led by Lanco Infratech and Jindal Steel. Lanco Infratech is the 78 per cent owner of the consortium through Prince Stone Investments, its Mauritius-based holding company, and Jindal Steel holds the rest.

The PFC chairman had sought the opinion of the solicitor general of India on the new management structure of the winning consortium.

Under the bid conditions, the lead partner cannot walk out of the project without forfeiting the bid.

However, Lanco, which was the minority owner, sought to overcome the hurdle by acquiring Globeleq Singapore, which had bid as the lead partner.