Excelsior Correspondent
JAMMU, Jan 24: The State Government today said it has initiated action against M/s GVK India, a leading firm in construction of hydro-electric power project for default under the Power Purchase Agreement in construction of Ratle hydro-electric project over river Chenab in Kishtwar district.
“The construction work on 850 MW Ratle hydro-electric project has been abandoned by M/S GVK. The developer was notified several times to resume work but they didn’t. This amounted to a Seller’s Event of Default under the Power Purchase Agreement, the contract document. Therefore, action for this default has been initiated against the developer,” Deputy Chief Minister, Dr Nirmal Singh, Incharge Power Development Department (PDD) told BJP MLA Shakti Raj Parihar in response to a written question in the Legislative Assembly today.
He said the Government was awaiting final judgment of the High Court of Jammu and Kashmir on 1000 MW Pakal Dul hydro-electric project.
“Chenab Valley Power Projects Limited (CVPPL), a joint venture of Jammu and Kashmir SPDC, NHPC and PTC. The project was tendered out for execution in turnkey mode but the bidding process was scrapped because of various reasons including the high rates. It was decided by the CVPPL to execute the project in package mode.
“However, the L1 bidder challenged the decision to cancel the bidding process for turnkey execution and got stay from the Court. Final arguments in the matter have been submitted and the judgment is awaited,” the Deputy Chief Minister said.
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