Government modifies tender guidelines for projects under Jawaharlal Nehru National Solar Mission

NEW DELHI: After finding some irregularities in earlier bidding process, the government today said it has modified tender guidelines for projects awarded under the Jawaharlal Nehru National Solar Mission (JNNSM).

An inter-ministerial committee, that was set up by the earlier government, to examine the irregularities in allocation of thermal power projects to companies under Phase I, Batch I of JNNSM has made certain suggestions.

"Based on the findings of the committee, the guidelines for subsequent tenders of JNNSM were suitably modified to clearly define the net worth criteria and treatment of convertible preference shares and debentures," Minister of State for Power, Coal and New and Renewable Energy Piyush Goyal said in a written reply in the Rajya Sabha.

"The clause regarding the controlling shareholding was modified so as to maintain controlling shareholding at more than 50 per cent till one year after commencement of supply of power," Goyal said.

One of the issues identified by the panel was that Lanco Infratech acquired controlling stake in seven companies in violation of the Ministry's guidelines for selection of new grid connected solar projects.

Goyal said that although it cannot be proved whether Lanco had acquired stake in seven companies, intension to do so cannot be ruled out as actions in acquiring low dividend compulsorily convertible preference shares are suggestions in that direction.

Another matter flagged off by the committee was regarding non-availability of information and transparency from NTPC Vidyut Vyapar Nigam Ltd.

The panel had observed that NVVN could have disclosed information regarding shareholding pattern and controlling shareholding on their website.

Besides another issue was legality of retroactive action with regard to changes in shareholding, equity infusion at various stages and allowing Lanco Infratech to take back preferntial shares.

"A notice was given to NVVN and then the default was removed, the same was accepted by the NVVM. This amounted to taking back the preference shares and thereby what could have been a deviation from guidelines was set right as per guidelines," Goyal said.

He said among the suggestions made by the committee for allotment of grid connected solar power projects in subsequent batches were definition of control as well as net worth must be clearly defined under guidelines, specific guidelines regarding selection of EPC contractor, physical verification of the company and others.