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Cogentrix may 'reconsider' pull-out decision

The Mangalore Power Company, a joint venture of Cogentrix Corporation of the US and China Light and Power, is reportedly mulling a review of its decision to abandon the power project in Mangalore.

The rethink is attributed to a Supreme Court ruling earlier in the day. The apex court had set aside a judgement of the Karnataka high court directing the Central Bureau of Investigation to probe into alleged kickbacks paid by Cogentrix, in the course of getting various government clearances for the project.

MPC managing director Ron Somers is reported to have said that "there has to be a reassessment" of the pull-out decision in the light of the SC ruling.

"The Supreme Court of India today quashed the impugned judgement of the Karnataka high court, clearing the 1,000 mega-watt Mangalore project of any wrongdoing with respect to cost-padding, kickbacks and bribery," MPC said in a statement.

"Today`s verdict vindicates what we have said from the very beginning, that the allegations against us are frivolous and baseless," MPC said in a statement. "We are pleased that our names are finally cleared and that justice ultimately prevailed."

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