The Bihar State Electricity Board (BSEB) has scrapped existing bidding for the selection of power distribution franchise for Patna city and has decided to call fresh bids, sources said.
The BSEB has also revoked the Letter of Intent (LoI) awarded to Essar Power which emerged as the single bidder for the project. However, it is not yet known what led the discom to cancel the tendering.
Essar Power, when contacted, said it has no intimation of the re-bidding.
?We have not received any communication from BSEB to this effect. We are in discussion with them for clarification in certain clauses of the LoI and await a satisfactory conclusion to the process,? an company spokesperson told FE.
The project was to be awarded to the bidder quoting the highest price for power purchase. Sources said Essar quoted power purchase cost of R3.62 a unit, higher than the reserve price of R 3.38 a unit fixed for the project.
The BSEB initiated bidding process for Patna city in June 2009. The discom scrapped it and floated fresh tenders in June 2011.
It happened when Calcutta Electricity Supply Company, which participated in bidding, refused to match the bid price of Glodyne consortium that was disqualified on technical grounds. Essar was the only company to participate in the second round of bidding for the project.