Shimla:The cabinet on Thursday approved handing over of 420 MW Reoli Dugli hydropower project to engineering major Larsen and Toubro (L & T) after the company agreed to a matching bid by another company that had decided to forgo it.
The project had earlier been allotted to Moser Baer Project Ltd through and bidding process held in December 2008, but as the company failed to pay up the upfront money that it had bid for on time, the allocation was canceled.
The proposed 420 MW Reoli Dugli hydropower project in Lahaul valley has been allocated to Larsen and Toubro on basis of a matching highest bid, said Rajwant Sandhu, chief secretary. With L & T being allocated the project it would have to pay about Rs 80 crore as upfront premium before executing it.
Besides the Reoli Dugli project, Moser Baer had won bids for four other projects, which included 320 MW Seli project, 149 MW Sach Khas project, 69 MW Teling project and the 90 MW Miyar project.
Having met the upfront premium payments for the four projects, AB Giri, Moser Baer chief executive hydropower said, â€œBesides Reoli Dugli, we are executing all the other four projects very fast.â€