Confirming the move, UP energy secretary P Chaturvedi said the proposals were still under evaluation, and a final decision was expected in a few months.

Official sources, however, say the fate of the project still hangs in balance, despite the decision of the state government to invite global bids for the second time. It is yet to be decided whether the project will be executed by a private company, as sought in the tenders, or will it once again be posed for assistance from the OECF of Japan, with the sanctions being partially lifted.

When asked, Chaturvedi said it was a bit too premature to comment on the mode to be followed for the execution of the project. He agreed that the project has suffered delays, adding a final decision will now be taken by the state cabinet.

Giving details,sources said the initial capacity additions, under the Anpara A and B projects, were carried out courtesy assistance of OECF, with Mitsui of Japan as the EPC contractor. However assistance for the Anpara C project could not be sought from OECF because of the sanctions.

The project was then offered to the private sector as the UP State Electricity Board was short of funds. Global tenders were floated, and bids were received from various firms including Hyundai and Mitsui.

Following the evaluation of bids, Hyundai was shortlisted for the project as its bid was the lowest at Rs 3,556 crore, and even a memorandum of understanding was signed between the state government and the Korean firm.

Mitsui lost out on the project despite being the contractor for Anpara A and B. Its bid price was Rs 4,645 crore.

Sources said after the state electricity board and political parties opposed the decision to hand over the project to Hyundai, it was decided to scrap the bid.

International tenders were floated for thesecond time, and only two bids were received from Daewoo and L&T which are currently under evaluation.

However, sources said the state government is now contemplating seeking OECF assistance as it wants the project to be set up on the pattern of Anpara A and B. The move, say sources, will reverse the international-bidding decision.

It is felt that OECF loans could be utilised for developing the project. Experts say the state electricity board will continue to own the project, unlike the earlier decision of handing it over to the private sector.

Industry sources, however, say if the state government decides to scrap the bids this time round, it will affect private-sector investment into the sector.