Reliance Power to get back Rs 85 cr it paid to govt for 2 projects

SHIMLA: The Cabinet today gave a nod to the return of Rs 85 crore to Reliance Power paid as an upfront premium for two hydro-power projects of Purthy (Pangi) and Sumte Kothang in Spiti district that the company had surrendered.

editorial@tribune.com

Pratibha Chauhan

Tribune News Service

Shimla, June 24

The Cabinet today gave a nod to the return of Rs 85 crore to Reliance Power paid as an upfront premium for two hydro-power projects of Purthy (Pangi) and Sumte Kothang in Spiti district that the company had surrendered.

Reliance had approached the Power Department for the return of Rs 85 crore. The Cabinet decided to return the money to Reliance, lest they knocked at the court’s door.

Reliance had been allotted these two projects about a decade ago, but later they surrendered the project on the grounds that the capacity of the 300 MW Purthy project in Pangi, Chamba, had declined by more than 20 per cent. There is a provision in the Hydro Power Policy of the state that a power producer can decline to take up the project on these grounds. In case of the Sumte Kothang hydro power project in the tribal district of Lahaul Spiti, Reliance had declined to execute the project due to stiff opposition by locals.

In fact, Reliance Power had been imposed a penalty of Rs 25 lakh for delaying the payment of upfront premium in case of the Purthy project and Rs 22 lakh in case of the Sumte Kothang project. Reliance had paid a sum of Rs 60 crore as an upfront premium for the Purthy project and Rs 25 crore for the Sumte Kothang project.

“The Cabinet has approved the payment of Rs 85 crore to Reliance after deducting Rs 47 lakh that had been imposed as penalty on them for delaying the payment of second instalment of the upfront premium that they had to pay for the two projects in Purthy (Pangi) and Sumte Kothang in Spiti district,” said sources.

Ordinance to restore bars, clubs

The Cabinet also gave approval to the Excise and Taxation Department to promulgate an ordinance which will pave the way for the restoration of thousands of bars, restaurants and clubs which had to face closure on account of the liquor ban on highways. Thousands of people and their livelihood will be restored by the promulgation of the ordinance which will amend the Himachal Pradesh Excise and Taxation Act-2007. “The ordinance is likely to be promulgated on June 27 and the amendment Bill will be tabled during the Monsoon Session,” said sources. 

Top Stories

Cruise drugs case: No bail for Aryan Khan today, Bombay HC adjourns hearing for Wednesday

Cruise drugs case: No bail for Aryan Khan today, Bombay HC adjourns hearing for Wednesday

Aryan Khan’s lawyers argue NCB has no evidence against the 2...

Cruise ship drug seizure: NDPS court grants bail to two accused

Cruise ship drug seizure: NDPS court grants bail to two accused

NCB claimed that Manish Rajgaria and Avin Sahu were among th...

Unity key, organisational strength must override personal ambitions, Sonia tells faction-ridden Congress

Unity key, organisational strength must override personal ambitions, Sonia tells faction-ridden Congress

Laments party's message not percolating down, acknowledges l...

Justice in sacrilege case must to offset anti-incumbency in Punjab: Sidhu at Cong meet

Justice in sacrilege case must to offset anti-incumbency in Punjab: Sidhu at Cong meet

Expresses hope that the issue of AG, DGP appointments would ...

Navy officer among 5 arrested by CBI for leaking confidential info about submarine project

Navy officer among 5 arrested by CBI for leaking confidential info about submarine project

It is alleged that the commander had discussed crucial detai...

Cities

View All