Hydel power project deal after dues cleared: Abu Dhabi firm | punjab | Hindustan Times
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Hydel power project deal after dues cleared: Abu Dhabi firm

punjab Updated: Apr 05, 2014 11:33 IST
Saurabh Chauhan
Saurabh Chauhan
Hindustan Times
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Abu Dhabi-based international energy and water firm TAQA has claimed that it will buy two hydropower projects being run by the Jaypee Group in Kinnaur district only after the Indian firm clears all its dues.


TAQA has told the Himachal Pradesh government that its deal with the Jaypee Group to buy the 1,000MW Karcham Wangtoo and 300MW Baspa Stage II power projects, struck on March 3, would come into effect only after the company clears its financial liabilities and pays Rs 13 crore as compensation to the local farmers, whose crops were damaged due to pollution during the construction of the projects.

Following TAQA’s statement, Jaypee has written to the state power department, expressing its willingness to clear all liabilities including damages due to the farmers.

In March this year, a TAQA-led consortium agreed to acquire two hydropower plants in Kinnaur district from Jaiprakash Power Ventures Limited, a subsidiary of the Indian infrastructure conglomerate Jaypee Group.

However, the company said it would settle all dues and financial issues before it sold off the projects, after the state government issued a notice to the Jaypee Group, reminding it of the implementation agreement signed with the state, besides asking it to pay the compensation due to the local farmers.
Chief minister Virbhadra Singh had blamed the union government of keeping the state in the dark about the Jaypee-TAQA deal.

The group also has to pay Rs 13 crore towards the Local Area Development Funds (LADF) for development of the surrounding areas, particularly those affected during project construction.

Jaypee has constructed a Rs 7.63 crore Industrial Training Institute building at Urni and a 40-bed hospital at a cost of Rs11.41 crore at Choltu in Kinnaur district.