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• Sir,This is to draw your attention to erroneous and misleading information in your on-going ‘DNA Investigations’ articles being published since January 16 pertaining to conduct and role of Reliance Infrastructure Limited as the EPC (engineering, procurement and construction) contractor for the 2x600 MW Raghunathpur Thermal Power Project (RTPP). Your investigation is marked by inaccuracies and biased selection of relevant facts.

• You state in ‘Power Play: DVC tender with RInfra’ published on January 16, that the Damodar Valley Corporation (DVC) violated rules to award the contract to R-Infra. The truth is that our organisation won this contract on the basis of ‘international competitive bidding’ (ICB) according to the guidelines stipulated in the ‘mega power policy’ of the Union Ministry of Power for development of power projects in the country, as well as in compliance to other applicable norms. In this process, which was applicable and available to all competitors, R-Infra proved its competence and capabilities in making a bid that offered the ‘lowest cost capex’ configuration, along with the latest-generation proven international technology from SEC. These are standard and basic parameters for awarding and winning EPC contracts in any sector in India and around the world.

• Your articles say the DVC gave an interest-free loan of Rs 354.07 crore to R-Infra as an unfair and arbitrary sop.Actually, the DVC had modulated its initial NIT (notice inviting tender) to offer interest-free advances to all competitors making the bid for the RTPP.An interest-free advance of Rs 355.76 crore was given to R-Infra after the LoA (Letter of Allotment) was completed and signed, as well as the provision of two bank guarantees equivalent of the same amount by R-Infra.At this stage R-Infra also submitted a CPBG (corporate performance bank guarantee) of Rs 222.17 crore, which was actually a requirement for a later stage. Thus, in this matter too, R-Infra complied with and stood by the best prevalent financial practices in the infrastructure sector.You are requested to also view this compliance on the part of R-Infra in conjunction with the lowest cost offer of its bid and acknowledge the financial advantage R-Infra actually offered to the public exchequer.

• Your articles also wrongly state that the RTPP was to be among the six power plants to be commissioned by the DVC for supply of power to the 2010 Commonwealth Games and that the R-Infra bid received an allegedly unfair consideration on this ground. Your accusation is not at all borne by the relevant PPA(power purchase agreement) signed by the DVC in 2006 with Delhi Transco Ltd (DTL) for supply of 2,500 MW power from six power plants. The identity of the select power plants for this supply (Mejia phase-I & II, Koderma, CTPS & Durpagur) with details of proposed supply allocation has been overlooked in your story. Moreover, the relevant PPAs signed for RTPP by the DVC in 2008 clearly state that the supply from RTPP’s production has to go to the states of West Bengal, Jharkhand, Punjab and Haryana as per conditions stipulated in the ‘Mega Power Policy’ of the Government of India.

• We would also like to draw your attention to the fact that the relevant DVC-DTL agreement of 2006 for supply of 2,500 MW to Delhi is still not operative as the select power projects in this agreement have yet to become operational.R-Infra is not connected to any of these plants.Further, the NTPC’s Jhajjar & Bawana gas-based plants (owned by Delhi government) which were also set up exclusively for the CWG, are yet not fully ready. Thus, blaming and singling out R-Infra for the delay of the RTPP and any consequent adverse impact on power procurement for Delhi during the CWG 2010 has no justification and is blinkered analysis of the overall situation.Of course R-Infra is concerned about the delays in the RTPP. Many of the reasons are intrinsic to the policy and operative environment for infrastructure creation in our country. Land acquisition is the single most important hurdle.At RTPP, the required land for the main power plant was made available to R-Infra in successive bits only by March 2009 (as against the contractual stipulation of three months from the signing of the LoA in December 2007).Further, to this date, the DVC has not been able to hand over the entire land committed for the project.

• There are other issues too that have hindered the RTPP as well as other infrastructure projects across the country. Your own newspaper has often taken note of these issues.As a strong and significant stakeholder in the nation’s economic development, R-Infra too is deeply interested in creation of an operative environment that would enable and secure world class infrastructure in India.As part of this commitment, we do not fall into the trap of biased and wild charges against other stakeholders. We would welcome public institutions such as DNA to subscribe and adhere to the same ethics.

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