The court has ordered the state government to award the project to Reliance Infrastructure, which emerged as the second highest bidder for the project.
The company had also challenged the state governments decision to award the project to the GVK-L&T combine in the court.
However, in case of another project, the 170 mw Bogudiyar Sirkari Bhyol, awarded to the GVK-L&T and where the state governments decision has been legally challenged, the court has left the final decision to the state.
In February 2004, the state utility, Uttaranchal Jal Vidyut Nigam Limited (UJVNL) issued international notice inviting proposals for implementation of five hydropower projects, including the Mapang Bogudiyar and Bogudiyar Sirkar Bhyol on behalf of the state government.
Players like GMR, Reliance Infra and GVK-L&T participated in bidding for these projects.
The bid clearly stipulated that in case of a bid by a consortium, the net worth and net cash accrual of the Lead Partner should not have been less than 26% of the net worth/net cash accrual of the consortium. This was an important and essential condition of the bid.
However, the net worth and net cash accrual of GVK(Lead member) was only 11% and 14% respectively of the consortium.
The state government, however, relaxed this mandatory bid condition and pre-qualified GVK-L&T consortium for submission of price bids.
Based on offers submitted by bidders, the state government allotted the Mapang Bogudiyar and the Bogudiyar Sirkari Bhyol projects to the GVK-L&T consortium.