Madras HC rejects consortium's petition in Ennore supercritical power project

Says evaluation of tender by Tangedco in favour of BHEL not arbitrary, capricious or unfair

The Madras high court has dismissed the writ petitions filed by a private consortium against the Tamil Nadu Generation and Distribution Corporation (Tangedco) for refusing the the former’s bid for developing 2x660-Mw Ennore SEZ supercritical thermal power project.

Tangedco, however, had selected the tender submitted by the public sector utility major Bharat Heavy Electricals Limited (BHEL).

Justice V Ramasubramanian, in his order said, “The price bids of the petitioner as well as the third respondent had been evaluated as per the parameters indicated in the tender notification by an independent consultant, who himself was selected through a tender floated in the earlier stages. Therefore, the writ petitions are bound to be rejected. Accordingly, the writ petitions are dismissed.”

The consortium partners, Trishe Energy Infrastructure Services and China-based Central Southern China Electric Power Design Institute, alleged procedural impropriety and failure of Tangedco to comply with the provisions of the Tamil Nadu Transparency in Tenders Act, 1998.

The petition also alleged Tangedco of failing to consider certain issues of public interest, wrong evaluation of the price bid of the consortium as against that of the BHEL, and breach of confidentiality, in that Tangedco had negotiated with BHEL even during the period when the evaluation process was on.

The court stated the manner in which Tangedco and related offices had conducted the process of evaluation of the tenders does not appear to be arbitrary, capricious or unfair.

While selecting companies for executing the supercritical thermal power project, Tangedco had evaluated the bid price of the BHEL at Rs 7,840.87 crore, and had evaluated the bid price of the petitioner at Rs 9207.258 crore.

It had consequently termed BHEL as the L1 bidder and awarded the contract to it.

It may be noted the consortium had already approached the Madras HC in a similar matter related to the Udangudi supercritical thermal power project.