Himachal losing Rs.150 crore a year on power project

August 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.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |