Eligibility of Globeleq being examined: Shinde

New Delhi, Mar 19 (UNI) Amid controversy that the Sasan Ultra Mega Power Project, in Madhya Pradesh, has been ''traded'' by Globeleq its lead developer, Power Minister Sushil Kumar Shinde said elgibility of the Singapore-based company is currently being examined.

The lead member of the lowest bidding consortium Globeleq Singapore Pvt Ltd (GSPL) has sent a communication informing the Special Purpose Vehicle (SPV) that the holding company, Globeleq Ltd has sold 100 per cent interest in GSPL to Prince Stone investments, Mauritius (60 per cent) and Jindal Stell and Power (40 per cent).

Informing the Rajya Sabha in a written reply, Mr Shinde said the elgibility of Globeleq Singapore is currently being examined.

The guidelines for tariff based competitive bidding, issued by the Central Government under the provisions of the Electricity Act 2003, provides that the bidder who was quoted the lowest levelised tariff as per the evaluation procedure, shall be considered for the award.

The evaluation committee have the right to reject all price bids if the rates quoted are not aligned to the prevailing market prices.

''The evaluation of bids in respect of Sasan UMPP was carried out through an Apex Level Evaluatiion Committee, which also has senior representatives of major procuring states -- MP, UP and Haryana,'' Mr Shinde said.

Meanwhile Power Finance Corporation (PFC), the nodal agency for ultra mega power projects, has sought clarifications from Globeleq-Lanco combine on its announcement regarding the sale of Globeleq Singapore Holding to Jindal Steel&Power and Lanco Infratech's (QNCF) arm.

The consortium, which bagged the Sasan UMPP by quoting the lowest tariff in December, would need to reply to the queries before this month-end, the deadline for signing the agreement for the project.

PFC has sought the details since clarity was needed on the ownership structure. If Globeleq Singapore continued to hold at least 51 per cent, there would be no problems on its going ahead with the Sasan project.

Globeleq had sold its entire holding in Globeleq Singapore, the company involved with Lanco Infratech in the bid for the Sasan project, to Princestone Investments and Jindal Steel&Power.

Princestone Investments is the holding company of Lanco Infratech.

Globeleq Singapore will not retain interests in any Globeleq power businesses or projects. Globeleq is focused on building and operating medium-sized power generation businesses around the world.

Last year, Mr Shinde handed over the Letters of Intent (LoI) for awarding the first two 4,000 MW UMPPs to the successful bidders on the basis of lowest quoted tariff. While Lanco Infratech, with Globeleq Singapore Pte Ltd as its lead partner, was awarded the Sasan project in Madhya Pradesh, Tata Power bagged the Mundra project in Gujarat.

Mr Shinde noted that the setting up of the UMPPs would herald a new dawn for the power sector. The two projects of 4,000 MW each using environment-friendly technology would mean a huge capacity addition, he said.

The process of selection of successful developers for the other UMPPs, namely, Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) is expected to be completed by April 2007.

The Centre envisaged a capacity addition of one lakh MW to meet its mission of 'Power For All by 2012'. As achieving this target would require the development of large capacity projects at the national level to meet the power requirements of a number of states, the Power Ministry along with the Central Electricity Authority (CEA) and the Power Finance Corporation (PFC) were working jointly for the development of nine such 4,000 MW UMPPs on the basis of tariff-based competitive bidding.

These projects, with scope for further expansion, are expected to add about 36,000 MW within a span of six-to-eight years and help in faster capacity addition.

UNI