Lanco Infratech threatens to quit Rajpura thermal Plant on tariff negotiation issue
GAGANDEEP AHUJA
Wednesday, 11 February 2009
PATIALA: Lanco Infratech, the sole bidder for 1,200 MW Rajpura Thermal Plant has reporteedly given warning to Punjab Government that they will prefer to leave the project if Government insisted to further decrease its levelised tariff for the Built operate and own (BOO) power project.

PSEB sources told The Pioneer Wednesday that warning was given by the company representatives during the meeting with Punjab Government and PSEB officials held at Chandigarh recently.

Sources said that Lanco Infratech has decreased 12 paisa from its quoted price Rs. 3. 36 per unit for the said project. PSEB has allotted Banawali power project to the Vedanta Group at Rs. 2.86 and giving project to Lanco at huge price has be cleared by Punjab Cabinet and it is mandatory to take clearance from Punjab State electricity regulatory commission before allotting to the company.

Lanco had earlier withdrawnits bid for the Rs 20,000 crore Tilaiya Ultra Mega Power Project saying its consortium partners were reluctant of going ahead with the process due to the global financial crisis. Lanco tpp has decided not to participate in the fourth round of bidding for the Rs 9,000 crore Bara Mega Power Project in Allahabad which is a big step considering Lanco was the lowest bidder in the first round.

Er. Padamjit Singh, former power adviser of Punjab government said here on Wednesday that Government should own the responsibility for the setting up the power projects in the satae.
He said that Government has sought competitive bidding under section 63 of the electricity act 2003. He said that giving power project to private companies is suicidal and at one hand Government is committed to give cheap power to its people and on other hand giving power projects to private sector means costly power.