2 companies get show cause notice for stopping work on 440kV substation

The state power transmission agency has issued a show cause notice to two companies that jointly took up the construction of a 440 kilovolt (kV) substation, estimated to cost about ₹350 crore, in Noida’s Sector 123 only to drop the contract without intimation, said officials aware of the development

The state power transmission agency has issued a show cause notice to two companies that jointly took up the construction of a 440 kilovolt (kV) substation, estimated to cost about ₹350 crore, in Noida’s Sector 123 only to drop the contract without intimation, said officials aware of the development.

HT Image

Shekhar Agarwal, Meerut zonal chief engineer (transmission), Uttar Pradesh Power Transmission Corporation Limited (UPPTCL), said the contract for constructing the 440 kV substation was awarded to Hyosung Power Corporation of South Korea and its Indian counterpart Piscesia Power Transmission Private Limited in November 2014.

“The expected date of completion was March 31, 2021. However, since the Indian company stopped the work a few months ago, it could not be completed on time. Taking cognisance of their negligent approach, we have served a show cause notice to both the companies. Since no response has come from the Indian company, we have contacted the South Korean company. The Hyosung officials assured us that the project will be completed by October 2021,” said Agarwal.

Agarwal further said almost 70% of the work on the substation is complete. “The 400 kV transformer has already been charged. Now, it needs to be connected with three smaller 132 kV substations, being constructed in sectors 63, 67 and 115. The transformers of the smaller substations have not been charged yet. Once completed, these substations will get power from the power grid in Jahangirpur,” he said.

Explaining the negligent conduct of Piscesia Power, another official from the state power utility said the company is on the verge of a bankruptcy owing to a feud between its partners. “Since all of their bank accounts are frozen, they will not be able to operate. Now, the onus lies on its Korean partner to complete the project,” said the official asking not to be named.

M Devaraj, the chairman of UPPTCL, said he is looking into the matter and the project will be completed within 100 days. When contacted, the spokesperson of Hyosung Power Corporation said they will restart the construction work in a week and will complete it by October.

Officials of Piscesia Power did not respond to e-mails sent seeking their comment.