PFC seeks legal view on Sasan-Lanco

Power Finance Corporation, the nodal agency for ultra mega power projects, has sought legal opinion on whether Lanco Infratech had violated the norms while bidding for the Rs 16,000 crore (Rs 160 billion) Sasan power project.

According to sources, PFC has asked the Attorney General and the Additional Solicitor General to give their views on alleged violations committed by Lanco Infratech, which won the project in partnership with Globeleq Singapore, hitherto 100 per cent subsidiary of Globeleq Ltd UK.

Globeleq Singapore is now jointly owned by Lanco and Jindal Steel and Power Limited (JSPL) in 60-40 per cent ratio.
Asked when the decision would be taken on the fate of the first ultra mega power project, sources said the case has been referred to Power Minister Sushil Kumar Shinde and a decision was expected in the next few days.

Meanwhile, R C Lahoti, former Chief Justice of India, gave a clean chit to Lanco Infratech on the issue of lead member (Globeleq Singapore) saying there was no violation of any of the clauses of the bidding process.

"It cannot be disputed nor denied that the successful consortium met and continues to meet these minimum financial requirements even with a changed shareholding pattern of the lead member," Justice Lahoti said in his views sought by Lanco Infratech.

When contacted, Pradeep Lenka, CEO of Lanco Group, told PTI, "At this juncture, I would like to emphasise that there was no violation of any of the condition of qualification for participating in the bidding process."