For the proposed first two ambitious mega power projects in Uttar Pradesh?Bara and Karchhana?it may be third time lucky. Exactly a month after Reliance Energy bagged the two projects, after emerging as the lowest bidder in a revised bid, the UP government has decided to call off the entire process and go for fresh global bidding.

The bid evaluation committee meeting has been called on July 17, which would be headed by the chief secretary. This, according to government sources, is being done to make the project more lucrative so that more and more investors can come forward for the bidding. For this, the state government is mulling over providing more ?sweeteners? to investors who are willing to invest in the two power projects, in order to get them to provide bids at a reduced cost to the state utility, the Uttar Pradesh Power Corporation.

It may be mentioned that bids for the 660×3 1,980 mw Bara and 660×2 1,320 mw Karchana projects were first won by Lanco Infratech in April this year. However, despite being the lowest among the nine bidders, Lanco?s bid was not considered the most suitable by the government.

Officials of the power corporation said that despite being the lowest bidder at Rs 2.89, the bid was almost 60% more than that of the Rs 1.91 quoted by the same company for its Anpara C project in Sonebhadra.

Subsequently, the government has decided to go ahead with a rebidding for the two projects, which then went to Reliance Energy, which quoted one paisa less than Lanco?s bid.

?The reason why we have gone in for a fresh global tendering for this project is that we realised that despite being the lowest of all the nine bidders, Reliance?s bid was just a paisa less than the previous bid.

This did not add up to much difference to the UPPCL and also lest the first part feels cheated, we decided to take a relook at the entire process and are now trying to see what other incentives we can offer to the investors so that they can quote reduced bids, yet not feel the pinch?, said the official.

The choice for the government is a tough one. While the rebidding process can set off a delay of three months for the projects, going by the present quotations may end up with the public paying more. And that with elections around the corner, may be a costly affair for the government.

The government is, therefore, still trying to work upon new terms and conditions that can be offered to the investors. While earlier the companies were offered a 90:10 selling option wherein the company will sell 90% of the power to the state power utility at the price quoted by it and the remaining 10% could be sold by the company at the market price, the government is now trying to offer a more level playing field, in which the company can sell a larger share at the market rate.

?We are yet to come up with the magic formula of the ratio of power that should be sold to the UPPCL,? said the official.