HC paves way for Pakal Dul power project construction

Ishfaq Tantry

Tribune News Service

Srinagar, January 28

The J&K High Court has paved the way for the construction of the 1,000-MW Pakal Dul Hydroelectric Power Project, which is coming up on the Marusudar river in Kishtwar district in the state.

The court today vacated the interim stay on the fresh bidding and tendering process which was undertaken by the Chenab Valley Power Projects Private Limited (CVPP) in March, 2016. It also dismissed a petition by the Drangdhuran Hydro Power Consortium, which had challenged the cancellation of earlier bidding and tendering process by the CVPP.

“The submission of tender in response to a notice is no more than making an offer which the state or its agencies are under no obligation to accept”, a single bench of Justice Tashi Rabstan said in its 231-page judgment delivered today, adding that the “right to refuse the lowest or any other tender, is always available to the government.”

To implement the 1,000-MW capacity Pakal Dul project, the CVPP had adopted international competitive bidding and in response to a tender notice dated June 19, 2013, five consortia had submitted their bids in sealed covers.

Four bidders were considered techno-commercially responsive after a detailed evaluation of the stage-I (technical and qualification particulars) bids by the Tender Evaluation Company (TEC).

Subsequently, the stage-II (price) bids of the four bidders, who met the qualification criteria and whose techno-commercial bids were found responsive by TEC with the approval of competent authority, were opened by the Tender Opening Committee on February 3, 2014.

The petitioner company was assessed as lowest evaluated bidder by TEC. Negotiations were held between the consortium and the CVPP from June, 2014, to September, 2014, for “discount and lowering” their price, but the meetings yielded no results.

Considering all aspects involved in “turnkey works,” the CVPP finally decided to cancel the “turnkey tender” on June 16, 2016, and “invite fresh bids on a “package mode” on March 2, 2016.