Himachal allots 960-MW hydel project to Reliance Energy

SHIMLA: Himachal Pradesh today alloted the 960-MW Jhangi-Thopan-Powari Hydel Project to Reliance Energy and said the project would be re-advertised if the company rejected the offer.

The project is expected to entail an investment of around Rs 10,000 crore.

The Cabinet meeting, chaired by Chief Minister Virbhadra Singh, today decided in favour of Reliance Energy as there was no other bidder, an official spokesman said.

The government had earlier allotted the project to Netherlands-based Company Brakel Corporation in 2006 but the state's High Court cancelled the contract in 2009 and asked the government to invite fresh bids.

The government advertised the project thrice but there was only one bidder for the project located in tribal Kinnaur district of Himachal.

The Brakel had already deposited Rs 193 crore as upfront money with the state government in 2009, but the High Court directed the government to take a fresh decision on the matter by inviting tenders or acting on the old bids.

At that time, the decision of the State Government to rebid the project was challenged by Reliance in Supreme Court but the government today decided to allot the Rs 10,000 crore project to Reliance, even though the case is pending with the apex court.

Initially there were two projects of 480 MW each but later the project was converted into single project of 960 MW.

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