Petition No.22 of 2008
Date of hearing: 04.12.2008
Date of Order: 08-12-2008

1. This petition has been filed by Nabha Power Ltd. (NPL), incorporated under the Companies Act, 1956 as a wholly owned company of the Punjab State Electricity Board (PSEB) with its registered office at The Mall, Patiala, for approval of the Commission to continue the bidding process under clause 5.7 of the Guidelines issued by the Ministry of Power, Govt. of India on 19.1.2005 and amended from time to time (Guidelines).

2. The petitioner has submitted that the RFQ was issued on 18.1.2008, wherein 13 bidders submitted their proposals before the bid deadline (18.3.2008) and 9 of the 13 bidders were declared qualified for issuance of RFP documents. Out of the 9 qualified bidders, only 7 bidders purchased the RFP documents which were issued on 9.6.2008. Before the last date of receiving financial bids, Lanco Infratech Limited requested for extension of time which was not accepted by the petitioner. Since none of the other qualified bidders requested for any extension of the bid submission deadline, the petitioner expected that bidders, who had purchased the RFP documents, would submit their proposals for the Project. However, only Lanco Infratech Limited did so.
   
   
3. The petitioner has averred that the specific provision of the Guidelines relating to this petition is clause 5.7 which states that to ensure competitiveness, the minimum number of qualified bidders should be at least two other than any affiliate company or companies of the procurer. If the number of qualified bidders responding to the RFQ/RFP is less than two, the procurer can continue with the bidding process only with the approval of the Appropriate Commission. The petitioner has further submitted that in order to start the Project in time considering its relevance to the benefit of the public at large, PSEB has unanimously decided to continue the bidding process with single RFP bid, subject to the prior approval of the Commission. A prayer has been made that the Commission may allow the petitioner to open the RFP bids of the single bidder (Lanco Infratech Limited) and continue the bidding process as per clause 5.7 of the Guidelines. It is further stated that after approval of the Commission, the Evaluation Committee will evaluate the bids and make its recommendations in line with clause 5.15 of the Guidelines. The petitioner will thereafter again seek approval of the Commission for acceptance of final recommendations before issue of letter of intent (LOI).
   
   
4. The petitioner was heard on 25.11.2008 and allowed to submit additional information which was duly filed. The petitioner was again heard on 4.12.2008. As per Section 63 of the Electricity Act (Act), the Commission shall adopt the tariff if such tariff has been determined through a transparent process of bidding in accordance with the Guidelines. The Commission notes that such a process has been followed by the petitioner even though a solitary bid has been received. The Commission also takes note of the clause 5.7 of the said Guidelines which specifically provides that the process of procurement can, with the prior approval of the Commission, be carried forward even if the number of qualified bidders is less than two. Further, in view of the submission made by the petitioner that the decision of the Evaluation Committee and recommendations of NPL, PSEB and the State Government shall be submitted to the Commission, the petitioner is allowed to continue with the bidding process with the direction that the LOI shall be issued only after seeking approval of the Commission.
   
   The petition is disposed of, accordingly.
   
   
   
   

   Sd/-	Sd/-	Sd/-
   (Satpal Singh Pall)	(Baljit Bains)	(Jai Singh Gill)
   Member	Member	Chairman

   
   
   
   Place: Chandigarh
   Date: December 8, 2008