Lanco not to challenge EGoM decision in court

Despite having strong legal grounds to challenge the decision of the Empowered Group of Ministers (EGoM) on its bid for the Sasan ultra mega power project, the Lanco group has decided not to exercise the option at this stage, L Madhusudan Rao (pictured), chairman, Lanco Group, said today.

Lanco's acceptance of the EGoM's decision comes as a surprise in the wake of the stoic silence maintained by the company ever since Energy Minister Sushilkumar Shinde declared Lanco-Globeleq consortium's bid invalid last week.

Stating that the company did not agree with the government's view, Rao, however, said the decision not to contest it had been taken in the larger interest of the public as well as the company.

"The authorities spent seven months deliberating the issue before arriving at their conclusion. Preoccupation with Sasan in this backdrop has slowed our work on many of our other projects. Given the large opportunities lined up before Lanco, focusing our energies on them is wiser than entering into litigation," Rao told Business Standard.

He said the company had contributed a great deal to the nation by creating a new benchmark price of Rs 1.19 per unit through the Sasan bid, which was now being matched by Reliance Power.

"Now, we are planning to take up power projects all over Asia as the cost at which we are ready to offer power provides us global opportunities," the Lanco chairman said. The company has already bid for a power project in Indonesia, he added.