Swan Gujarat trial

Vol 14, PW 16 (10 Feb 11) News in Brief

Gujarat state authorities will be in the spotlight next week when they submit an ‘affidavit’ to the Gujarat High Court explaining why they allocated 49% equity in a 2100-MW proposed power project to Mumbai-based Swan Energy.

PETROWATCH learns the eagerly-awaited High Court hearing was postponed from February 2 to (Tuesday) February 15 because of a two-day strike by lawyers. During the last hearing on December 30, Gujarat chief justice SJ Mukhopadhyay made clear he wants the Gujarat government to carry out a new and transparent tendering process if it wants to give Swan the 49% stake in project promoter GSPC Pipavav Power Company (GPPC).

Gujarat opposition Congress leader Shaktisinh Gohil filed a Public Interest Litigation in the High Court on July 17 last year, challenging the stake sale to Swan without issuing an open tender. GSPC, acting for the state government, signed the controversial shareholder agreement with Swan on January 20, 2010.