EGoM defers decision on Sasan for Jul 24

The Empowered Group of Ministers (EGoM) today deferred a decision on the 4,000-Mw Sasan ultra mega power project till July 24 and extended the bid validity by one month to August 5.

"There are some problems that we have raised which require some time," Power Minister Sushil Kumar Shinde told reporters after the meeting.

The EGoM is exploring the options to sort out the problems, he said, adding the group was examining all options so that future projects do not get affected. He, however, said the bid price was not the issue.

The EGoM meeting was held to take a decision on whether Lanco, which was awarded the project last year, violated bidding norms. The dispute arose when Lanco's foreign partner Globeleq sold its 70 per cent stake in the joint venture to Lanco and Jindal Steel and Power Ltd after winning the bid.

Shinde said the EGoM was for all upcoming projects and not for Sasan alone. "This EGoM is not for one but for everything," he said.

As the Sasan bid was valid up to July 5, there was an urgency to decide on whether Lanco misrepresented facts, as pointed out by bid consultant Ernst and Young.

Shinde said the EGoM has been constituted to eliminate delays due to technical and legal issues in the implementation of ultra mega power projects. The EGoM would not examine the bids but would only step in cases where issues became complex, he had earlier said.

The EGoM was set up after the government and the Power Finance Corporation (PFC) failed to decide on fate of the project. PFC is the nodal agency for implementation of ultra mega power projects. Lanco-Globeleq had won the project by quoting a tariff of Rs 1.19 per unit, outbidding nearest rival Reliance Energy.

Lanco Infratech, Reliance Energy and NTPC Ltd have already extended the bid bond validity for the Sasan project by one month to August 4.