Gammon, NPCC, to build UJVN's Vyasi project

After all the clearances, UJVN is hoping to resume the remaining 60-70% of the work in the project, hanging fire for two decades due to lack of funds

After constructing the 304-Mw Maneri Bhali-II in 2008, the stage is set for completing the remaining work on the state-run UJVN Limited's 120-Mw Vyasi project, after all the clearances are received.

UJVN has roped in National Project Corporation Limited (NPCC) for building the power house and selected Gammon for the construction of the dam.

After all the clearances, including forest stage-I and -II, UJVN is hoping to resume the remaining 60-70 per cent of the work in the project, hanging fire for two decades due to lack of funds. The project that began in 1986 was abandoned in 1991 in the undivided Uttar Pradesh.

The UJVN had settled all the claims with NPCC, a public sector unit, for the construction of Vyasi hydel project, 120 Mw. Under the pact, NPCC would resume construction, without seeking its old claims. The project cost is Rs 115 crore, said UJVN Managing Director G P Patel.

"We have issued a letter to the NPCC to start work. The work of the dam will be given to Gammon under the open tender system."

UJVN officials told Business Standard the total investment in the Vyasi project would be Rs 950 crore. The construction cost would be Rs 9 crore a Mw, seen as not so high.

In 2009, the UJVN paid Rs 74 crore to National Hydro Power Corporation (NHPC) as part of the liabilities after taking over the 420 Mw Lakhwar-Vyasi project. Thereafter, the UJVN bifurcated the project in two parts - 120 Mw Vyasi and 300 Mw Lakhwar.

After commissioning the state's first big project - 304 Mw Maneri Bhali-II in 2008, the UJVN had suffered a big setback when a series of its major projects including 480 Mw Pala Maneri and 381 Mw Bhaironghati were scrapped on environmental and religious concerns. Since then, UJVN was left with no big project. "Let's hope that UJVN will complete this Vyasi project in 4-5 year time," said Patel.