Globeleq-Lanco to lose Sasan project

24 March 2007

The consortium had bagged the project with an aggressive tariff bid of Rs1.19 per unit, competing against major power players like Tata Power, NTPC, Reliance Energy, Jindal Steel & Power, and L&T.

This was the lowest of the nine bids received to develop the project, and brought the Hyderabad-based Lanco to the national stage.

The fate of the project is now uncertain as the government will have to take a call on whether it should call for a rebid or consider another bidder.

Sources say the government may prefer to again open the bidding again.

Questions over the technical and financial capability of the consortium were raised after Globeleq Singapore was sold by parent company Globeleq arm of DFID, a UK government agency for investments in the third world. Globeleq Singapore was bought over by Prince Stone, the holding company of Lanco and JSPL.