HP hydel project hangs in balance

With the Himachal Pradesh High Court (HC) ordering cancellation of the contract for the twin Jangi-Thopan-Powari hydel project to the Netherlands-based Brakel Corporation, the future of this 960-Mw project continues to remain uncertain.

There is every indication that the legal battle could go to the apex court, which would further delay the project and escalate the cost of the mega project. The Jangi-Thopan-Powari project is to be built in the remote tribal Kinnaur district on the Sutlej river

.The 65-page judgment of the HC came on Wednesday on the grounds that Brakel had misled the government by producing erased documents.

This is also being seen as a major setback for the state government as the court has described its decision to allot the project to Brakel as arbitrary, illegal and irrational.

Brakel has already deposited Rs 193 crore as upfront money with the state government.

The court has directed the .government to take a fresh decision on the matter in four weeks by inviting fresh tenders or acting on the old bids.

Reliance Industries had challenged the decision of the state government saying that Brakel wasn’t technically and financially competent to build this mega project and had also misled the government by producing false documents.

The court also pointed out that while the bid document was purchased in December 2005, the company Brakel INV was registered two months later.After investigating it was found that the registration certificate was forged and the dates on the certificate were erased.