A day after the empowered group of ministers on ultra mega power projects declared Lanco Infratech's bid for the 4,000 Mw Sasan project as void, executives from the Anil Dhirubhai Ambani Group, led by chairman Anil Ambani, met Power Minister Sushil Kumar Shinde.

ADAG group company Reliance Energy Ltd is the second-lowest bidder for the Rs 16,000 crore (Rs 160 billion) project, after Lanco. However, with the Lanco bid becoming invalid, REL could claim to be the lowest bidder.

A final decision will be taken by Sasan Power Ltd, the special company floated by Power Finance Corporation to pilot the Sasan project, in less than a week.

"The EGoM has referred the issue to the Sasan Power board. They will decide on whether to call for a rebid or accept REL's bid," said a power ministry official.

Though Lanco is yet to receive any official communication from the government, they were readying for a rebid. "If PFC's shell company decides to invite fresh bids, we see a chance to re-enter the fray for the Sasan project," a Lanco executive told Business Standard.

After the EGoM meet on Tuesday, Shinde had said Lanco was eligible to bid again if there was a rebid for the Sasan project.

Lanco, in partnership with Globeleq, had offered to supply power at Rs 1.196 per unit. This was the lowest in the tariff-based competitive bidding for the project, for which it bagged the letter of intent. However, alleged misrepresentation by the company rendered the bid invalid.

REL's bid to supply power at Rs 1.296 per unit is the second lowest but is 10 paisa higher than Lanco's bid.

Lanco executives said consumers would lose Rs 500 crore (Rs 5 billion) annually if the project was awarded to REL. "The company is not averse to filing a suit if consumers are not going to benefit," said a Lanco executive, who did not wish to be identified.

REL executives declined to comment.