EGoM decides on snap bid for Sasan power project

It is almost certain now that the 4,000-Mw Sasan ultra mega power project is headed for a snap bid limited to three players who have kept their bids valid "" Reliance Energy, Jaiprakash Industries and NTPC.

Sources said the snap bid was the decision of the Empowered Group of Ministers (EGoM) and is now being implemented by the board of Sasan Power Ltd "" the special purpose vehicle floated by the Power Finance Corporation to pilot the Rs 16,000-crore project.

"We have no power to take decisions. We are only complying with the EGoM decision," said a member of the Sasan Power Board, which met on Thursday.

Interestingly, the EGoM had said that Sasan Power would decide the future course of action.

"Sasan Power Ltd will examine the further course and submit its recommendations to the EGoM soon ," the EGoM had said, adding that Sasan Power should "keep the overall public interest and terms and conditions of bid documents in view".

"The EGoM, headed by Power Minister Sushil Kumar Shinde, has already asked these three companies to offer the best possible bids in the next two-three days," said an official close to the development.

With the latest turn of events, NTPC, which had put in a bid to supply power at Rs 2.126 per unit, is back in the fray. This was the second highest bid, and was 93 paise higher than the lowest bid of Lanco-Globeleq of Rs 1.196 per unit, which has now been declared void.

Jaiprakash has bid Rs 1.650 per unit. These three companies had extended the validity of their bid bond of Rs 120 crore each for the Sasan project and hence became eligible for the snap bid. The bid validity will expire on August 4 and the attempt is to reach a decision before that.