Jangi-Thopan power project allotted to Reliance

Kuldeep Chauhan

Tribune News Service

Shimla, August 5

The Cabinet today allotted the controversial 960 mw Jangi-Thopan hydropower project in Kinnaur to the Reliance Energy, whose petition on the allotment of this project is still pending in the Supreme Court.

But the state government has yet to take a call on Adani’s refund claims of about Rs 280 crore, which the company claimed to have paid as an upfront premium to the Netherlands Brackel company, which was allotted the project in 2006.

The Cabinet further decided if the Reliance Energy would not accept the offer, the project might be re-advertised, seeking fresh bids. The Jangi-Thopan project on the Sutlej was tipped as one of the most viable projects in Kinnaur and the government had hoped to get the higher upfront premium for this, said an official.

But the government extended the deadline thrice and got just one bidder, U-flex. But when the bid was scrutinised, it did not fulfil the requirements and was rejected and the project was allotted to Reliance today, said a top official.

Reliance figured among eight applicants for the project in 2006. But the company, including Adani, did not participate in the bids. Subsequently, Uflex was left in the field.

In fact, Reliance had sought the Jangi-Thopan project on the ground that it was the second highest bidder after Brackel in 2006. Reliance had offered Rs 37 lakh per mw as an upfront premium in 2006.

The state government had cancelled its allotment to Brackel Corporation in 2009, when it failed to pay the upfront premium”, revealed officials. The government slapped damages to the tune of Rs 1,400 crore on Brackel as the project was delayed for eight years.

Consequently, the companies moved the court. But Adani and Brackel withdrew the case from the court, while the Reliance petition is still pending.

The state government has yet to settle Adani’s claims of repayment of Rs 282 crore that the company claimed it had paid to the Brackel company when it was allotted the project in 2006.

But the government remained indecisive on Adani’s claims. “There is no legal document with the government that can justify its claim. They may be partners, but it was an “internal arrangement” between the two, commented officials.