No Agreement Signed With Brakel For 960 MW Project – Dhumal

[lang_en]Shimla: Brakel Corporation NV that was served a show cause notice regarding cancellation of a 960 MW hydropower project, has responded to it and the government was examining it, chief minister Prem Kumar Dhumal in a written answer told the Himachal Vidhan Sabha.

Presenting a statement about the present status of the project, Dhumal during question hour informed the house that no memorandum of understanding (MOU) or agreement for the Jangi-Thopan and Thopan Powari project has been singed yet.

He said that a show cause notice for misrepresentation of facts at the time for inviting bids, failure to supply all the relevant and essential information, transferring or promising to transfer equity in the project to a third party without proper prior approval had been served on Brakel.

Brakel Corporation also did not furnish all the essential details of the company and of another company Brakel Kinnaur Power which was set up without informing the government.

Reliance Energy in a written petition before the High Court had alleged that eligibility of the company to bid for the project was doubtful, which on government scrutiny found substance and decided to reopen the issue and examine it in detail, the chief minister informed the house.

However the government had accepted an earlier notice where Brakel was asked to deposit the Rs 173.42 crore upfront money, which was its winning bid for allotment. The company had also met all the conditions like payment of interests for delayed payments as well as changing other allotment terms.

With the government having issued a cancellation notice to Brakel, the Reliance Energy petition challenging the allotment of the project had been dismissed by the High Court, said chief minister Dhumal.[/lang_en]

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