Bengaluru, 29 April

Engineering giant Larsen & Toubro (L&T) has lost a legal battle against Karnataka Power Corporation Ltd (KPCL), with the Karnataka High Court ruling in favour of KPCL regarding the tender for Rs 8,300 crore Sharavathi Pumped Storage Power Project. L&T, which did not participate in the tender, raised objections, alleging that the process was conducted with undue haste.

The project is part of KPCL’s efforts to address Karnataka’s electricity shortage. Down To Earth previously reported that the tendering process for the pumped storage was initiated on 2 February, and lasted only 21 days. The timeline provided for contractor inquiries and clarifications was notably brief, spanning just four days.

Justice M Nagaprasanna, presiding over the single-member bench, dismissed L&T’s plea, stating that a non-participant in a tender process should not seek to halt it. L&T then appealed, contending that the 21-day tender period was unusually short, typically requiring at least 90 days, arguing that this was meant to benefit specific bidders.

However, the division bench, chaired by Chief Justice NV Anjaria and Justice Krishna S Dixit, affirmed the legitimacy of the tender process, noting that KPCL had the authority to determine tender timelines and that L&T had participated in the pre-bid phase, making their objections inconsistent. PTI