India power ministry drops Ernst & Young for evaluation errors

NEW DELHI, Nov 23 (AsiaPulse) – India’s Power Ministry has
banned international consulting firm Ernst & Young (E&Y) from
taking up any further assignments in the sector after anomalies
in the evaluation of bids for the Sasan project were
highlighted in a report by power sector expert P.S Bami. “We issued a show-cause notice to E&Y on their consultancy
work on the Sasan project based on Bami Committee Report … It
was almost two months back… It has nothing to do with the CAG
report on the matter,” a Power Ministry official said.

India’s Power Finance Corp (PFC, BSE:532810) has already
banned the global consulting firm after its internal committee
found some discrepancies at the time of handing over the Sasan
UMPP to the successful bidder.

The report of the committee led by P.S Bami, an ex-NTPC
chairman and managing director and a sectoral
expert, had raised questions over the evaluation of bids for
the Sasan ultra-mega power project in Madhya Pradesh, which is
being executed by Reliance Power (BSE:532939).

The Sasan UMPP was the first such ultra-mega power project,
for which bids were called in the year 2007. The project was
awarded to Reliance Power after the company quoted the lowest
tariff of Rs 1.17 per unit for electricity produced from the
project.

(PTI) r