Tatas to SC: Have bidder's right despite leaving process

Tata Power has asserted it did not waive its right as a bidder by not participating in the entire process for Rs 20,000 crore Sasan Power Project though admitting in the Supreme Court that it could not have matched successful bid by rival Reliance Power.

In its rejoinder to the government affidavit in a petition filed by it against the decision to allow use of coal from captive mines for Sasan for other projects, the Tata group firm said it could not be debarred from challenging the subsequent arbitrary actions of the Centre.

"The petitioner having participated in the entire bidding process cannot be said to have waived its right as a bidder by not extending its bid," it said, adding that decisions subsequent to tendering process would make the award of contract "entirely meaningless".

Tata Power further submitted that the bidding process of the Sasan was never "meant or intended to vest" the successful bidder with the right to get extra coal of 9 million ton per annum, to be used by Reliance Power for developing other power projects.

Rejoinder has come over an affidavit filed by the centre, in which the government had submitted that the Tata Power's petition was "misleading and erroneous".

In the affidavit, the government had also questioned the locus standi of Tata Power, saying, "The petitioner cannot allege violation of any legal right vis-a-vis tender process, as it waived its right by not extending the bid."

The government said that the petition challenging the use of coal for projects other than the 4,000-MW Sasan Ultra-Mega Power Project (UMPP) was filed on a totally false basis and "gives a totally misleading and erroneous impression".
    
Today, during the proceedings of the Supreme Court, senior advocate Harish Salve appearing for the Tata group had asked Apex Court's permission to file rejoinder.
    
This was accepted by a bench comprising Justices G S Singhvi and A K Ganguly and adjourned the matter to September 13 for next hearing.
    
Tata Power has challenged the decision of an Empowered Group of Ministers (EGoM) which had allowed R-Power to use excess coal from the captive mines meant for the Sasan project in Madhya Pradesh for another 4,000-MW project at Chitrangi, in the same state.
    
In the rejoinder Tata also denied the government's allegation that it filed "false averments" before the court and tried to hide fact that it was informed by the ministry that extra coal would be allowed to be diverted.
    
"Government is deliberately misreading the petitioner's case.... The petitioner has at all times proceeded by lumping all three coal blocks allocated to Sasan as captive coal mines," Tata submitted, adding that government by exercising its power converted the "captive mines for the project to a captive mine for the promoter".