Reliance Power cries foul over Lanco Anpara plans

Written by Anupama Airy | New Delhi, Oct 5 | Updated: Oct 6 2007, 06:32am hrs
Lanco Infratech and Reliance Power may spar in the power sector again--this time over the 1,000-mw Anpara C power project in Uttar Pradesh. The last time they did so was over the 4,000-mw Sasan power project, which led to the exit of Lanco Infratech and award of the project to Anil Ambanis Reliance Power, In a letter dated Sept 14 to the power secretary and chairman of UP Electricity Regulatory Commission, Reliance Power has charged Lanco of gross violation of the bid conditions. It has blamed Lanco for changing the unit size of the project, from 500 mw to 600 mw, after being awarded the project.

Despite repeated attempts, Lanco group chairman Madhusudan Rao did not respond to calls by FE.

In its letter, Reliance Power further stated that while the bid conditions for the project specified a unit size of 500 mw, bidders were required to abide by this condition at the time of bid submission and during project execution. However, subsequent to being awarded the project, Lanco requested the state government to change the unit size from 500 mw to 600 mw and this was accepted.

Change in unit size after (the) bid process is over and project has been awarded results in substantial change in bid conditions and grossly violates the commissions orders. It also gives unfair advantage to Lanco compared to other bidders, the letters stated.

Seeking cancellation of the project to Lanco, Reliance Power has sought re-bidding for the project from all qualified bidders after considering the modified bid conditions.