Himachal losing Rs.150 crore a year on power projectAugust 23rd, 2011 - 6:46 pm ICT by IANS
Shimla, Aug 23 (IANS) Himachal Pradesh is losing a revenue of over Rs.150 crore (over $32 million) annually as a hydropower project allotted to a Dutch firm by the state is caught in a legal battle, the state assembly was informed Tuesday.
“On the basis of estimated generation, an annual state share of 12 percent free power from the 960 MW Thopan-Powari-Jangi hydropower project is 51.8 crore (electricity) units,” Chief Minister Prem Kumar Dhumal said in a written reply in the assembly.
The state government awarded the project to Dutch firm Brakel Corp Dec 1, 2006.
Officials of the state electricity department said the total annual financial loss to the government as royalty due to delay in the project’s commissioning were around Rs.155 crore.
One electricity unit sells at an average price of Rs.3.
The government, as per the agreement, is entitled to get 12 percent free power from Brakel. The project located in Kinnaur district requires an investment of Rs.6,000 crore.
The project is currently under litigation and the case has been listed for hearing in the Supreme Court Aug 25.
Brakel had challenged the Himachal Pradesh High Court ruling of Oct 7, 2009, that ordered cancellation of the project’s allotment on a petition of Reliance Infrastructure, one of the bidders.
The state government signed an agreement with Brakel in 2008, two years after the project was awarded to the Dutch company, for starting pre-construction activities for the project. It was tentatively scheduled to be commissioned by 2017.
- Himachal losing Rs.100-cr a year on delayed hydro project - Apr 05, 2011
- Dhumal details loss due to delay in hydropower project - Dec 08, 2010
- Himachal wants to re-allot hydro-power project to Brakel - Jul 25, 2010
- Himachal penalises Dutch firm Rs.280 cr for project delay - Dec 05, 2009
- Court notice to Himachal government over power project - Mar 17, 2010
- Himachal Pradesh to issue show-cause notice to Brakel - Oct 22, 2009
- Himachal court cancels allotment of hydropower project to Brakel - Oct 07, 2009
- Probe demanded into Himachal hydropower project contract - Oct 09, 2009
- Brakel gets more time to respond to Reliance Energy's petition - Mar 31, 2009
- Himachal signs power project agreement with Brakel - Apr 09, 2009
- Himachal court advances hearing on Brakel's hydropower project - Apr 23, 2009
- Himachal saw green moves and political upsets (Flashback 2009) - Dec 16, 2009
- Himachal allows Dutch firm to begin power project work - Nov 25, 2008
- Himachal Pradesh invites Brakel to sign power project agreement - Nov 30, 2008
- Himachal Pradesh defers decision on controversial power project - Nov 03, 2008
Tags: allotment, bidders, cancellation, chief minister, construction activities, dutch company, dutch firm, electricity department, electricity unit, himachal pradesh, hydropower project, litigation, mw, oct 7, pre construction, royalty, rs 6, state assembly, state government, state share