Monday, November 25

Reliance Power shares hit 5% lower circuit after SECI debars co from its tenders for 3 years

Shares of Reliance Power cracked 5% to hit their lower circuit at Rs 41.47 on the BSE after the company along with its subsidiary Reliance NU BESS were debarred from participating in Solar Energy Corporation of India’s (SECI) tenders for three years for allegedly submitting "fake documents" as per an official document.“Based on the examination of documents submitted by Maharashtra Energy Generation, now known as Reliance NU BESS (for a project), it was discovered that as per the tender requirements, the endorsement of the Bank Guarantee against EMD (issued by a foreign Bank), as submitted by the Bidder, was fake,” said SECI in a note.SECI said it has debarred Reliance Power Reliance NU BESS from participating in tenders issued for a period of three years. Since the above discrepancy was discovered subsequent to the e-Reverse Auction, SECI was constrained to annul the tendering process.As per the tender conditions, the above submission of a fake document as part of its response to RfS, rendered the Bidder eligible for debarment from future tenders issued by SECI.Also read: Hot stocks: Brokerage view on Indian Hotels, Cummins, Trent and TCSThe bidder, being a subsidiary of Reliance Power, had met the financial qualification requirements using the strength of its parent company.On a detailed examination of the matter, it was found logical to conclude that all the commercial and strategic decisions undertaken by the bidder were fundamentally driven by the parent company.The debarment could have far-reaching implications for Reliance Power’s participation in India’s renewable energy sector, especially as SECI plays a major role in procuring large-scale renewable projects and energy storage initiatives.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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