Private Power Program for India Gets Promising Start
A program to open India's power-generation sector to private developers is showing promise despite a bumpy start in the bidding for one of its first two projects. The apparent low bid for one project is facing challenges from competing bidders, who allege that the bidder misrepresented its qualifications. But the developer for the second project is awaiting final award, and successful bidders for two others in the program will be selected by July. Five other projects in the Ultra Mega Power Project (UMPP) program are planned.
Indian Power Minister Sushil Kumar Shinde last December issued letters of intent to award the first two UMPPs to the selected successful bidders. A consortium of Globeleq Singapore Pte. Ltd. and Lanco Infratech Ltd. was the apparent low bidder for the Sasan project in Madhya Pradesh state. Tata Power Company Ltd. won the Mundra project in Gujarat state.