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GMR Energy takes Ministry of Power, REC, PFC to court

Last Updated: Tuesday, October 27, 2009 - 18:01

New Delhi: GMR Energy, a subsidiary of the
GMR group, has challenged in the Delhi High Court its
disqualification from bidding for three power transmission
projects worth Rs 6,800 crore and sought a stay on the
tendering process.

GMR Energy has filed three petitions against the ministry
of power and two PSUs -- Rural Electrification Corporation and
Power Finance Corporation -- which had invited bids from the
private sector to set up three transmission projects.

According to the petition, GMR Energy was disqualified on
the ground that the formula for calculation of Internal
Resource Generation (IRG), one of the criteria for
qualification, was not correct.

In its petition filed through law firm Link Legal, GMR
submitted before the court that it had sought an opinion from
the Institute of Charted Accountants (ICAI) on the issue.

The ICAI said the formula adopted by it for calculation
of IRG is correct and acceptable, and in fact, compliant with
well-established accounting standards, GMR Energy submitted in
the petition.

The company submitted that it was disqualified on a
faulty criteria adopted for calculating the IRG and requested
the court to stay the tendering process.

Admitting it, a division bench comprising Justice B D
Ahmed and Justice Veena Birbal has issued notice to the
Centre, REC and PFC directing them to file their replies.

The court has listed the matter for next hearing in

Bureau Report

First Published: Tuesday, October 27, 2009 - 18:01

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