This is sriram siddhartha. Call it the Sasan effect. All future ultra mega projects may have to get Public-Private Partnership Appraisal Committee’s (PPPAC) approval before being bid out if the finance ministry has its way.
The finance ministry has conveyed its views to the power ministry that considering the good track record of PPPAC, it should also be involved in the approval process of the ultra mega power scheme, an official source said.
The proposal for involving PPPAC in the ultra mega power scheme is aimed at strengthening its vetting process. The scheme got almost derailed over the Sasan project controversy where the first winning bidder Lanco-Globeleq had to be declared invalid after the completion of the bidding process.
Both Sasan Power, the special purpose vehicle of Power Finance Corp (PFC) overseeing the project, and Ernst & Young failed to identify problems in the bid document of Lanco-Globeleq for the Sasan project till the project was awarded to the consortium. It is now felt PPPAC with experience in handling large infrastructure projects would strengthen the vigilance mechanism, preventing Sasan-like lapse.
At present, the bids are invited and scrutinised by PFC, appointed as the nodal agency to implement the scheme. After the proposed changes are implemented, PPPAC may evaluate future projects for deviation from rules and regulations before giving its nod. The body may also evaluate the projects at the inception stage when a site is identified and other linkages are given to it.
source - Economic Times
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4 comments:
Why not paste the link directly, O Rama?
http://economictimes.indiatimes.com/News/News_By_Industry/Ultra_mega_power_projects_may_need_PPP_panel_nod/articleshow/2276353.cms
Oh… u like reading from paper. Next time I will only post a link. Happy now??
TO GC
the articles which were posted by myself n janardhan are for your information. Read them just in case you missed them in paper. Comment if you find any contradictions.
Sriram - interesting article - question to ponder on - will the quality of the process improve overall, or will there just be more bureaucracy introduced? What do you guys think?
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