November 20, 2008

UP government goes for re bidding for 2 power projects

Project today reported that Uttar Pradesh government has decided to go ahead with a re bidding for the 2 mega power projects e of 1,980 MW Bara and 1,320 MW Karchana in Allahabad.

Uttar Pradesh Power Corporation had earlier decided to grant both the bids to Lanco as the tariff for power quoted by the company was the lowest among all the 9 bidders who had bid for the 2 projects. T

The UPPCL's decision was to be cleared by the energy task force before being given a go ahead by the state cabinet. However, it is learnt that, though the tariff quoted by Lanco were the lowest, they were still very high and needed to be reduced.

The cabinet has now decided that it will not invite fresh bidding for the 2 projects, but rather call for a re bidding between all the 9 contenders who had earlier applied for the projects will take place. For this process to take place, the UPPCL will now move an application to the Uttar Pradesh Electricity Regulatory Commission to seek the regulator's permission.