By IANS
New Delhi : The empowered Group of Ministers (eGoM) Tuesday declared invalid the Lanco-Globeleq consortium's bid for the 4,000 megawatt Sasan power plant in Madhya Pradesh.
The eGoM declared Lanco's bid as void ab initio (invalid from the outset) at the request for the qualification stage, Power Minister Sushilkumar Shinde told reporters here after the fourth meeting of the body.
The project, estimated to cost around Rs.160 billion, was originally awarded to a consortium of Lanco Infratech Ltd and Globeleq Singapore Pte Ltd in December.
The dispute over the project arose after Lanco's foreign partner, Globeleq, sold its 70 percent stake in the joint venture to Lanco and Jindal Steel and Power after winning the bid.
The eGoM took up the matter after it was alleged that Lanco misrepresented facts during the bidding process.
It met Tuesday as the validity period of the winning bid was extended to Aug 5, Shinde said.
Anil Ambani's Reliance Energy was the nearest bidder, followed by the state-run National Thermal Power Corporation. All three companies had extended the validity of the bid bonds.
The ministerial group was set up to eliminate delays due to technical and legal issues in implementing ultra mega power projects.