Govt upset as power firms shun project

Kuldeep Chauhan

Tribune News Service

Shimla, May 22

Though the state government is assessing the technical bid of the Uflex Company, it is upset over the tactical move played by the independent power producers (IPPs) for not participating in the project.

Uflex Company is a sole bidder for the controversial 960 mw Jangi-Thopan hydropower project on the Satluj in Kinnaur district.

Sources said even if the present bidder fits the bill, the state government had to report the matter to the Supreme Court.

“The government has to inform the court whether or not it gets a higher upfront premium than what the Reliance had offered when the Brakel Company of Netherland was allotted the project in 2006,” they said.

Interestingly, the Reliance figured among the eight applicants for the project, but the company, including Adanis, did not participate in the bid keeping the field open for Uflex, a new entrant in the power sector in Himachal.

The Reliance had sought allotment of the Jangi-Thopan project to the company on the ground that it was the second highest bidder after the state government cancelled its allotment to Brakel in 2009 when the company failed to pay the upfront premium, revealed the officials.

Both Adani and Brakel withdrew the case from the court, though the Reliance petition was still pending at the Apex court.

Far from expecting significant gain in the upfront premium, the state government is upset as all bidders kept away from the bid, despite that the project is touted as the most viable project in the state.

Besides this, the state government has yet to settle Adani’s claims of repayment of Rs 282 crore that the company claimed it had paid to Brakel when it was allotted the project in 2006.

The hydropower experts had termed Adani’s claims unjustified as the company had internal arrangement with Brakel, but despite that the Vidhan Sabha panel had supported Adanis claims.