Date:04/05/2008 URL: http://www.thehindu.com/2008/05/04/stories/2008050455151000.htm
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Probe Sasan power project award: CVC

Sujay Mehdudia

NEW DELHI: The controversial 4,000-MW Sasan ultra mega project of Reliance Power Ltd. continues to be in the news for all the wrong reasons. An inquiry, instituted at the instance of the Central Vigilance Commission, has recommended that the consultants be debarred for the “bidding fiasco” and that subsequent events which led to the final award of the project be probed.

Officials in the Power Ministry acknowledged that they had received the inquiry report from the PFC and action was under study.

Not only the role of the consultants has come under fire but questions have also been raised over certain PFC officials overlooking norms to award the project to the Lanco Infotech consortium and then to the L2 party. On its part, Lanco Infotech said it did do no wrong and in no manner did it fudge or hide facts during the bid.

Bidding process

The Ministry started looking into the bidding process after the CVC raised questions. Lanco Infratech Ltd, original winning bidder for the Rs. 20,000-crore project, was disqualified and thereafter Anil Ambani’s Reliance Energy, now rechristened Reliance Power, given a chance to match the winning bid.

The CVC specifically asked for a review of the role played by the private consultants, various committees and the Sasan Power Limited Board.

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