Thaindian News

Dharamsala, Dec 8 (IANS) With the delay in the commissioning of a $1,300 million hydropower project in Himachal Pradesh, there is a production loss of more than 4,000 million electric units annually, Chief Minister Prem Kumar Dhumal said here Wednesday.

“Since the award of the project Dec 1, 2006, there has been a production loss of 4,320 million units annually. So far, 17,280 million units have been lost,” Dhumal said in a written reply in the state assembly.

He said the project (awarded to Dutch firm Brakel Corp) is currently under litigation.

“The case has been listed for hearing in the Supreme Court Jan 24, 2011. The government filed its reply in the court July 22,” Dhumal said while replying to a question by Congress legislator G.S. Bali.

Brakel Corp had challenged an earlier ruling of the Himachal Pradesh High Court, which Oct 7, 2009, ordered cancellation of the allotment of the 960 MW Thopan-Powari-Jangi hydropower project in Kinnaur district to it on a petition filed by Reliance Infrastructure, one of the bidders.

“We allow the writ petition and quash the decision of the council of ministers dated Nov 25, 2008, as being arbitrary, illegal and irrational,” the high court then said.

Subsequently, the state government decided to invite fresh bids for the project. It even decided to forfeit the company’s upfront premium of Rs.280.69 crore ($60 million) deposited with the government for delaying the implementation of the project.

The state government signed an agreement with Brakel in 2008, two years after the project was awarded to the Dutch company, for starting the pre-construction activities for the project. The company had already carried surveys and investigations at the site.

The government, as per the agreement, is entitled to get 12 percent free power from Brakel. The project requires an investment of more than $1,300 million.