Home Economy Himachal Pradesh gets upfront money for power plants

Himachal Pradesh gets upfront money for power plants

By IANS

Shimla : Brakel Corp NV of the Netherlands has paid Rs.1.73 billion ($44 million) as half the promised upfront amount for two hydropower projects in Himachal Pradesh after the state government served the company a notice.

The state government had awarded two major hydroelectric projects – 480-MW Jhangi-Thopan and 480-MW Thopan-Powari – to Brakel over a year ago.

The company was to pay 50 percent of the upfront premium immediately. It had instead asked for extensions.

Immediately after assuming power in the state, the Bharatiya Janata Party (BJP) government sent the company a notice.

The notice asked why it should not cancel the awarding of the two projects to Brakel as it had not paid half the promised upfront money. Brakel has responded by paying up.

The state’s principal secretary of power, Ajay Mittal Tuesday confirmed this. He said the company had also filed a detailed reply stating why it had not paid the due money earlier.

The state government is studying this letter carefully, he said.

The previous Congress government had cancelled the award of 260 MW Kuther hydropower project to D.S. Constructions, a Delhi-based building firm, because it too had not paid up the due upfront money.