The decision to open the project for bids follows the state electricity regulator relaxing norms for submitting request for qualification (RFQ) following a petition filed by the Sangam Power Generation Company Ltd (SPGCL), the special purpose vehicle floated by the UP government to develop the project.
SPGCL had sought dilution of certain clauses for submitting RFQs by prospective developers including extension of the last date of submission of necessary documents.
The power majors who are in fray for the Sangam Project include Reliance Power; KSK Energy Ventures Ltd, Hyderabad; Devona Thermal Power and Infrastructure Ltd, New Delhi; Unitech Ltd, Noida; Essar Power Ltd; JSW Energy Ltd; CESC, Kolkata and Lannco Infratech Ltd.
Lannco had recently lost the coveted Sasan Ultramega Power Project to Reliance Power on technical grounds. SPGCL has initiated a two-stage bidding process to identify the prospective developers for the power project.
According to information available with FE, most of the bidders had approached Sangam Power Generation Company for relaxation of norms for submitting the RFQ documents including the extension of the last date of submission of the proposals.
After hearing petitions filed by various developers, the regulator has decided to relax the norms and extend the last date for submission of RFQs to September 1, 2008.
SPGCL had the concurrence of a string of distribution companies floated by UP Power Corporation Ltd, while Lanco Infratech Ltd, Usha Martin, KSK Energy Ventures Ltd, Devona Thermal Power and Infrastructure Ltd, Unitech Ltd, Essar Power Ltd, JSW Energy Ltd and CESC had sought more time for submission of responses to RFQ.