Its now official. The Attorney General Milon Banjerji had strongly recommended that the Lanco Infratech-Globeleq Singapore consortium could be disqualified even after issue of letters of intent for the development of 4,000-mw Sasan ultra mega power project (UMPP). Banerji?s opinion to the Power Finance Corporation, which is the nodal agency for the development of UMPP, way back on February 26, was kept quite secret.
Banjerji?s opinion, which is in FE?s possession, came for a discussion at the maiden meeting of the empowered group of ministers on Sasan UMPP held on Wednesday in New Delhi. Informed sources told FE, ?The meeting remained inconclusive and the eGoM will meet again on Thursday. The eGoM may consider further extending the bid validity beyond July 5.?
Banjerji has categorically said that the Jindal?s acquisition of 40% equity stake in Globeleq Singapore by acquiring the shares of Globeleq UK was not justified after the bid submission. ?In may view clause 3.2.1 contains a bar and permits a firm to put only one bid either individually or as a member of the bidding consortium. The position would not change even after the issuance of the letters of intent, in as much as what could not
have been done directly cannot be done indirectly,? Banerji said. According to him, the very basis on which the letters of intent came to be issued
to the Globeleq-Lanco consortium does not exist any more.
The request for proposal (RFP) and request for qualification (RFQ) documents do not permit change in the membership of the bidding consortium after the bid deadline and certainly not after the issue of the letter of intent. ?Clearly, in my opinion, the intention appears to be that the persons behind the company should not change after the submission of the bid. The question whether the new partner company would still fulfill the technical and financial credentials is not relevant as this would require submission of fresh bids, documents, undertakings and an evaluation afresh,? Banerji noted. Banjerji said that the change in the membership of the consortium was informed to the Sasan Power Ltd only on February 12, 2007 much after the bid deadline was over.
In fact, the change has been intimated after the letters of intent for award of the project have been issued in December last year. ?This is not permissible under the terms of the bid documents,? he added.