Sources said PFC wants to somehow go ahead with the present winning bidder since otherwise it could lead to delay in the project.
NEW DELHI: The evaluation committee for Sasan Ultra Mega Power Project, under HDFC chairman Deepak Parekh, met on Friday to take into consideration the legal opinion of the attorney general and developments relating to the award of project to Lanco-Globeleq combine.
Though officials from Power Finance Corporation, the nodal agency for UMPP, were tight-lipped about the meeting, sources said one of the crucial issues considered was Globeleq Singapore's financial credentials.
Sources said PFC wants to somehow go ahead with the present winning bidder since otherwise it could lead to delay in the project.
The company, formed in 2005, has submitted the financials of its parent company with whom it does not have any relation after being bought over by Lanco group company Prince Stone Investments and Jindal Steel and
Power Ltd. According to the details submitted by the consortium at the time of bidding, Globeleq Singapore's internal resource generation was shown as Rs 7,386 crore though it is in the negative.
Besides, according to the financial statement, audited by Ernst & Young, Globeleq Singapore had a profit after taxation of $17,788 during March 2005 (when the company was set up) till the end of December 2005. The consortium in its bid has quoted $47.508 million for PAT for 2005.
According to the audited financial statement and directors' report for March 29, 2005, and December 31, 2005, "the principal activities of the company is to provide advisory and support services".
This also goes against the company's case since technical requirements under clause 2.1.4 of the request for qualification the capital cost of projects developed in the last 10 years should not be less than Rs 3,000 crore.
Out of the capital cost, one of the project should be equivalent to more than Rs 500 crore.
The other crucial issue faced by the committee is in case the entire Lanco-Globeleq combine are disqualified then what should be the course of action. There are different views among the others bidders.
While a section believes that fresh bidding should be called for, some believe that is required only if the winning bidder (Lanco-Globeleq) voluntarily walk out of the project.
In the event of they being forced to quit, the L2 bidder, which in this case is Reliance Energy, could be asked to take up the project.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}