Sasan project: Extension of bid validity date likely to be sought

The uncertainty over the 4,000-Mw Sasan ultra mega power project (UMPP) is likely to linger for a few months at least, even though the validity of the bids for the project expires on June 6.

The board of the shell company floated to pilot the project is planning to ask Lanco-Globeleq "" the controversial winner of the Rs 16,000-crore project "" to extend its bid validity by "a few months" since that is the time likely to be taken for a final decision

"The Board of Sasan Power Ltd is meeting on Friday. We will request Lanco to extend its bid by two-three months. We are not in favour of rebidding," said a member of the board.

The extension is necessary since neither the government nor the Power Finance Corporation (the nodal agency for implementing ultra mega power projects), is ready to decide on the fate of the project.

A senior Lanco official said since the Lanco-Globeleq consortium had been given the letter of intent for the Sasan project, the condition of bid validity did not apply to it.

"The bid has no sanctity now. It has no locus standi," he said. The company has taken legal opinion on this.

While Lanco-Globeleq is the winning bidder for the pithead coal-based project "" it offered to supply power at the most competitive rate of Rs 1.196 per unit "" it is alleged to have misrepresented facts. The charge is denied by Lanco.

Nevertheless, this charge has put a question mark on the company's claims to the project.

The government, on its part, has also secured legal opinion from the law ministry.

"In case Lanco refuses to extend the validity of its bid, the board will decide the future course of action," said the board member.