State govt seeks Rs 2,700cr damages from Brakel Corporation
The Himachal Pradesh government has sought Rs 2,700 crore in damages from Brakel Corporation of the Netherlands for delay in the implementation of Jangi Thopan and Thopan Powari hydroelectric projects.punjab Updated: Apr 01, 2014 22:44 IST
The Himachal Pradesh government has sought Rs 2,700 crore in damages from Brakel Corporation of the Netherlands for delay in the implementation of Jangi Thopan and Thopan Powari hydroelectric projects.
The state government sent a show-cause notice last week to the Dutch firm for forfeiting a part of the upfront premium, amounting to Rs 280 crore, sources said. It has also claimed damages from Brakel worth Rs 2,700 crore, they added.
The two projects, of 480 MW each, were awarded by the state government to Brakel Corporation NV in December 2006, based on international bidding. The criteria included upfront premium to be paid to the state government. The company quoted at Rs 346 crore for the projects.
According to sources, Reliance Infrastructure was the second-ranked bidder for both projects. As Brakel failed to deposit part of the upfront premium within the time-frame, Reliance requested the state government to cancel the allotment of both the projects to the Dutch firm and allot them to Reliance.
Meanwhile, Adani Power - which was included as a consortium partner in the project by Brakel - had deposited the Rs 280 crore premium. Reliance filed a writ petition in the high court of Himachal Pradesh seeking cancellation of allotment of both projects to Brakel and allotting them to Reliance.