E&Y out of power ministry's radar

Ernst & Young (E&Y) has not been involved in any project bidding conducted by state-run Power Finance Corporation or the power ministry since the global consulting firm’s role in the Sasan ultra-mega power project (UMPP) bidding came under scrutiny in 2008.

E&Y said on Thursday it had not been barred by any public authority from taking up consultancy projects in the power sector. “There is no subsisting order of debarment against E&Y by any government authority or public sector undertaking,” a company spokesperson said.

A PFC official said E&Y had not been given any fresh assignment after their internal committee found discrepancies in the bids for the 4,000-Mw Sasan UMPP in 2008. “There was a virtual ban on E&Y since then.”

The Rs 16,000-crore project was initially awarded to Globeleq Singapore and Lanco Infratech. Later, the consortium was disqualified on alleged misrepresentation of financial parameters. Bids were again called and the project was awarded to Reliance Power.

According to people in the know, E&Y was given a show-cause notice by the ministry with regards to the bidding, but E&Y got a stay order and the case is still pending.