In February this year, within two months of winning the bid, the consortium changed hands with Globeleq, Singapore, being bought by an arm of Lanco and Jindal Power. Globeleq’s parent company distanced itself from the project.

Subsequently, Ernst & Young, the Ministry’s advisor on verifying the bidders’ qualifications, was asked to re-check Lanco-Globeleq’s bid. In April, Ernst & Young got back to Power Finance Corporation, the nodal agency for the project, claiming that Globeleq had misrepresented facts about the company.

When contacted, Lanco’s managing director Madhusudan Rao told The Indian Express: “We are confident that we have not violated any bid conditions.”

The file was then sent to the Law Ministry which was asked to clarify three key issues: can a change in holding of the parent company after the Letter of Intent is given lead to invalidation of the bid? Can the bid be annulled if infirmities are discovered after award of LoI? Can procurers, (or states) themselves cancel the deal? “The Law Ministry and Power Ministry have exchanged views,” is all an official is willing to say.

When asked why the LoI was issued and a second verification needed, Power Minister Sushilkumar Shinde told The Indian Express that “there are a lot of different versions (on the issue),” and that’s why it could be referred to a GoM.