Contractor playing truant on new Ganderbal hydroelectric

The Jammu and Kashmir government today said it was exploring the options for execution of 93 MW new Ganderbal Hydroelectric Project after the successful bidder, Hindustan Construction Company (HCC), failed to meet the formalities.
The Minister of State for Power, Asiea Naqash, in the House said the project was appraised by the Central Environment Authority (CEA) in November 2012 and put to tender on July 18, 2011 for implementation through competitive bidding system.
The HCC had emerged as a successful bidder with an evaluated quoted cost of Rs 820.77 crore with an additional rebate of Rs 1.59 crore on evaluated quoted cost.

The minister said the matter was accordingly placed before board of directors of JKSPDC in its 72nd meeting held on October 21, 2016 where it was resolved that the matter of award of project may be placed before the state cabinet for consideration.
The matter was considered by state cabinet in its meeting on April 28, 2017, where in a cabinet sub-committee, under the chairmanship of the Deputy Chief Minister Nirmal Singh was constituted for implementation of project with the direction to place their recommendations before the state cabinet.
"State cabinet in its meeting held on June 16, 2017 accorded approval to award the contract to the lowest bidder at an estimated project cost of Rs 819.2 crore".

Accordingly, the notification of award was issued by Jammu and Kashmir State Power Development Corporation Limited (JKSPDC) to M/s HCC on August 8, 2017," she said, adding as a prerequisite for signing the contract, the contractor has to submit performance bank guarantee equivalent to a sum of Rs 82 crore within 28 days of issuance of notification of the award," she said.

However, the minister said due to inability of M/s HCC, the successful bidder to furnish performance guarantee, despite repeated extensions in time of submission for the same, the bid security has been encashed.
Meanwhile, Naqash said preconstruction activities like construction of access and approach roads to various project components sites stands almost completed.

"Land acquisition of various components followed by compensation to private owners, stands paid, deposited in the collector's office.
"Transfer of state and forest land also stands completed with due compensation for land and trees", she said.