Jangi Thopan project goes to SJVNL

Pratibha Chauhan 

Tribune News Service

Shimla, October 22 

It is after a protracted legal battle and delay lasting 12 years that the Cabinet on Monday decided to allot 780 MW Jangi-Thopan-Powari hydropower project in the tribal Kinnaur district to Satluj Jal Vidyut Nigam Limited (SJVNL). 

Earlier, the project was allotted to Brakel company in 2006, but it was cancelled in 2009 as the company had failed to pay the upfront premium. Reliance had sought the Jangi-Thopan project on the ground that it was the second highest bidder after Brakel in 2006 when eight companies had evinced interest in the project. Reliance had offered Rs 37 lakh per MW as the upfront premium in 2006. 

The delay of over 12 years has also resulted in the capacity of the project getting reduced from 960 MW to about 780 MW due to various factors, including the decrease in the water flow and release of 20 per cent mandatory free flow into the river. It was on August 5, 2016, that the government had allotted the project to Reliance which then declined to take it up. The government had issued a letter of intent to Reliance Power after it withdrew its petition from the Supreme Court in July 2016. The government even went to the extent of extending the deadline for depositing the upfront premium. However, the issue of return of Rs 280 crore to the Adani group paid up as upfront premium for the Brakel could not be resolved. 

The previous Congress regime had sought bids from three major public sector companies — the SJVNL, NHPC, NTPC — in September 2016 for the project. They had submitted their applications, seeking the project on a memorandum of understanding route.

The SJVNL had emerged as a strong bidder as Himachal would have got 25.5 per cent share as per its stake in the company. 

The Cabinet also decided that the power department would come up with timeline for all projects allotted on nomination basis to both Central and state public undertakings. This would help in timely completion of projects, saving huge expenses in the form of huge cost escalation.

In a nutshell

• The project was allotted to Brakel in 2006, but it was cancelled in 2009, as the company had failed to pay the upfront premium
• Reliance had sought the project on the ground that it was the second highest bidder after Brakel
• Reliance had offered Rs 37 lakh per MW as the upfront premium
• It was on August 5, 2016, that the government had allotted the project to Reliance which then declined to take it up
• The SJVNL, NHPC, NTPC had submitted their applications, but the SJVNL emerged as a strong bidder