However, the then Girija Prasad Koirala government of Nepal amended the criteria, which had earlier sought only private players, allowing bids from the public sector as well.

Satluj was also allowed to amend its free energy offer to 21 percent from the initial 4.5 percent.

Jindal sought court remedy, alleging that the awarding of the contract to its Indian competitor was illegal.

However, the apex court quashed the petition Sunday, upholding the government's decision.

It also said if the slighted Indian company felt there was corruption involved, it should lodge a complaint with Nepal's Commission for Investigation of Abuse of Authority.