The transfer of Sasan Power to Lanco Infratech-Globeleq Singapore consortium has been postponed owing to the delay in the completion of formalities by Power Finance Corporation.

As per the bid document, the power purchase agreements with the state governments will be signed after the transfer of the company, which is setting up ultra mega power project at Sasan in Madhya Pradesh.

PFC, which is implementing the ultra mega power projects, has recommended the bid evaluation committee to analyse the potential of Globeleq Singapore to undertake the Sasan project. Other bidders in the race for the project have raised objections, claiming that Globeleq Singapore is a shell company and is relied upon its parent company for qualifying for the project.

According to the request for qualification (RFQ) of Sasan project, the company should have internal resource generation capacity of Rs.1,140 crore, net worth of Rs.1,000 crore and annual turnover of Rs.2,400 crore. However, it is learnt that Globeleq Singapore has no experience of developing any projects in the last 10 years worth Rs.3,000 crore. So it is evident that Globeleq Singapore has neither financial nor technical capability and has drawn upon the vast credentials of its parent Globeleq, which owns 2,500 MW equivalent of assets world wide.

Also See:

Lanco, Jindal tie up for Sasan power project (14-Feb-07)

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