Stay together or get lost: New rule for UMPPs
For future UMPPs, the government is now considering a proposal to automatically disqualify the bid of a consortium if it breaks.
By PTI |
NEW DELHI: Wiser from the controversies in awarding Sasan ultra mega power plant, the government is now considering a proposal to automatically disqualify the bid of a consortium if it breaks to avoid a repeat of the situation that delayed the Rs 20,000 crore project by seven months.
The proposal was discussed by an inter-ministerial panel comprising representatives of power and law ministries among others as part of changes in the bidding documents for the ultra mega power projects, sources told PTI.
The Power Ministry as well as state-run Power Finance Corporation, the nodal agency responsible for awarding these 4,000 MW coal-fired projects to public or private companies through a competitive bidding process, had a tough time in the case of Sasan project when the original winning bidder Lanco-Globeleq consortium broke. Globeleq's 70 per cent stake was bought by Lanco Infratech and Jindal Steel and Power Ltd, resulting in a controversy as to whether this was permitted.
Sources said the proposal is part of a mergers and acquisitions clause that would be inserted in the revised bidding documents for these projects. "If a consortium partner walks away then the bid will be declared null and void," the sources said, but added a final decision is yet to be taken.
Further, according to the changes in bidding documents the successful bidder will not be allowed to sell coal from the captive mines alloted for the project to any third party. This is aimed at ensuring that the mine is used for the purpose for which it is allocated and not for making profits.
Developers would also be barred from selling the land they get on concessional rates from the government for the project. The land would have to be used only for the specified project, the sources added.
The proposal was discussed by an inter-ministerial panel comprising representatives of power and law ministries among others as part of changes in the bidding documents for the ultra mega power projects, sources told PTI.
The Power Ministry as well as state-run Power Finance Corporation, the nodal agency responsible for awarding these 4,000 MW coal-fired projects to public or private companies through a competitive bidding process, had a tough time in the case of Sasan project when the original winning bidder Lanco-Globeleq consortium broke. Globeleq's 70 per cent stake was bought by Lanco Infratech and Jindal Steel and Power Ltd, resulting in a controversy as to whether this was permitted.
Sources said the proposal is part of a mergers and acquisitions clause that would be inserted in the revised bidding documents for these projects. "If a consortium partner walks away then the bid will be declared null and void," the sources said, but added a final decision is yet to be taken.
Further, according to the changes in bidding documents the successful bidder will not be allowed to sell coal from the captive mines alloted for the project to any third party. This is aimed at ensuring that the mine is used for the purpose for which it is allocated and not for making profits.
Developers would also be barred from selling the land they get on concessional rates from the government for the project. The land would have to be used only for the specified project, the sources added.
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