Reliance says no to Jangi-Thopan project

Kuldeep Chauhan

Tribune News Service

Shimla, August 16

The fate of the jinxed 960-MW Jangi-Thopan power project remains uncertain. It is learnt that Reliance Power has refused to execute the project. Now, the Cabinet will take a fresh call on the project that has been hanging fire for the last 10 years.

“Reliance Power is reluctant to work on the Jangi-Thopan project, which was offered to it by the government,” said Power Minister Sujan Singh Pathania.

“There is no evidence that could establish that Adani has paid the upfront premium for the project on behalf of Brakel company, which was allotted the project earlier. The Cabinet will take up the issue,” he said.

The government had issued a letter of intent to Reliance Power after the withdrawal of its petition from the Supreme Court last month. It had extended the deadline for the company to deposit the upfront premium till August 1.

But the company did not show any interest in depositing the upfront premium, said officials. “We will bring this to the notice of the government and it will take the call,” they added.

“Reliance has not deposited the upfront premium and the refund issue also remains pending,” said an official at the Directorate of Energy.

The Cabinet had decided that the government would refund the Rs 282 crore upfront premium to Adani, but with a rider that first Reliance Power would deposit the upfront premium, said an official.

The government had offered the project to Reliance Power as the company had pleaded that it was the second highest bidder after Brakel of the Netherlands and the project should be allotted to it after the government cancelled the allotment to Brakel in 2009. The government had allotted the project to Brakel in 2006, but it did not deposit the upfront premium, said sources.