September 08, 2008

Center to re invite bids for Tilaiya UMPP

It is reported that union government has decided to re invite offers for the ultra mega project at Tilaiya in Jharkhand. The report cited a senior power ministry official as saying that “The existing request for qualification stands cancelled.” He added that this has been done to accommodate the new tighter norms for eligibility introduced after the dispute over the Sasan project.

Union government had already completed the first stage of the bidding process in April 2007 and declared 10 companies qualified bidders eligible to put in a price bid for the 4,000 MW pithead coal based project. These bidders will have to apply again.

According to the official, scrapping the process was necessary following a recommendation of the empowered group of ministers, which sought to plug the loopholes in the bidding documents that emerged as the bids for the Sasan project were being evaluated.

Industry officials feel that the re bidding would provide an opportunity to join the race again for those who lost out in the first round. Lanco Infratech, for instance, is keen on the Jharkhand project, having lost the Sasan project.