August 22, 2008

Reliance declared lowest bidder for Sasan UMPP

India’s empowered Group of Ministers met to consider the report submitted by the Board of Sasan Power Limited on the decisions of the EGoM taken in its last meeting.

It was noted that Sasan Power Limited had received revised offers from the three remaining bidders Jaiprakash Associates, National Thermal Power Corporation and Reliance Power Limited and that the revised bid of Reliance Power Limited quoting levellised tariff of INR 1.19616 per KWH was the lowest of the three bids.

Accordingly, the EGoM has advised that the procurer should consider taking immediate action to issue the letter of intent to the lowest bidder. For this purpose, the EGoM has advised that the matter should be placed before the board of Sasan Power Limited expeditiously for taking appropriate action.

Reliance Power Limited had earlier bid at INR 1.29 per unit and was the second lowest bidder for the project. Though the Lanco-Globeleq Singapore consortium had outbid Reliance Energy with a tariff bid of INR 1.19 per unit, the consortium later dissolved after Globeleq Ltd sold its entire stake in Globeleq Singapore Pte Ltd to Lanco and Jindal Steel and Power Limited, as a result of which, the government appointed EGoM which looked into the matter and found the Globeleq-Lanco bid null and void.