Gridco to extend deadline for Cesco bid

The state-owned transmission and distribution concern, which had invited offers for private companies for acquisition of a controlling 51 per cent stake in the four distribution zones, had to solicit fresh bids for Cesco as nobody preferred to bid for this company. Gridco sources said the companies shied away from bidding for Cesco as it had a 100 per cent escrow account with the Orissa Power Generation Corporation (OPGC) in which AES Transpower has a49 per cent stake.

Following the failure to get a response from the companies for Cesco, Gridco invited fresh tenders relaxing the conditions. According to the original tender conditions, the interested companies were supposed to submit their quotations without any conditions. Now, Gridco has written to the seven companies/consortia that were shortlisted for the bids that they can submit their fresh offers indicating the conditions.

Meanwhile, Gridco has taken up the escrow account matter with the state government. The state government is reportedly talking to the OPGC management to relax the escrow account norms. Gridco sources said the three companies/consortia – BSES Ltd, Tata Electric & Viridian Group (UK) and Grasim Industries & Singapore Power – who have offered bids for the three other zones, Nesco, Southco and Wesco, have only to submit their financial offers for Cesco as their technical offers have already been scrutinised. However, the other four companies/consortia – Electriciti De France,Enron, Reliance and AES Corporation – have to submit both the technical and financial bids for Cesco.

The sources said a decision about awarding the zones to the highest bidders would be taken soon. Mumbai-based utility company BSES Ltd has offered the highest price. It has quoted Rs 85.31 crore for Wesco and Southco together and Rs 88.19 crore for the Wesco and Nesco combination. For individual companies, BSES has offered Rs 53.84 crore for Wesco, Rs 21.80 crore for Southco and Rs 33.61 crore for Nesco.