Fate of 48 MW power project hanging in balance during past over one decade

Even after SAC nod, balance works yet to be re-tendered
*Sub-contractors furious over denial of payments

Mohinder Verma

JAMMU, Feb 29: Incredible it may sound but it is a fact that fate of 48 Mega Watt hydro-electric project in Doda-Kishtwar, which was planned over a decade back by the Jammu and Kashmir Power Development Corporation, is still hanging in balance. Moreover, pending works on the project have not been re-tendered even nine months after the approval of the Administrative Council.
The decision about construction of 48 Mega Watt Lower Kalnai hydro-electric project in Doda-Kishtwar was taken over a decade back and in the month of December 2009 tender was floated for selection of consultant for preparation of Detailed Project Report, framing of bid documents for single stage national competitive bidding process and assisting J&K Power Development Corporation for procurement of EPC contract for implementation of project on turnkey basis.
After the long drawn exercise, the project was awarded on Engineering, Procurement and Construction (EPC) basis to M/s Coastal Projects Limited in the month of September 2013 and it was announced at that time that the project would be completed within three years—by September 2017.
M/s Coastal Projects Limited engaged local contractors for different components of the hydro-electric project. However, work on the project never remained smooth because of one or the other reason and M/s Coastal Project failed to speed up the work despite repeated concern in this regard by the Jammu and Kashmir Power Development Corporation, official sources told EXCELSIOR.
Due to poor progress of work and listing of coastal projects in the insolvency list of RBI, the Finance Sub-Committee of the Power Development Corporation recommended termination of the contract and encashment of Performance Bank Guarantees (PBGs).
“In view of poor progress of the main EPC contract, the Project Management Consultancy—M/s ICCS Rodic Consultants Consortium was asked to minimize its manpower deployment. Subsequently, the PMC demobilized their staff, handed over the records and formally closed their services in August, 2018”, sources informed.
Finally, the State Administrative Council (SAC) in its meeting held on June 20, 2019 under the chairmanship of the then Governor Satya Pal Malik accorded sanction to the termination of EPC contract with M/s Coastal Projects Limited and PMC contract with M/s ICCS-Rodic Consultants Consortium as per the provisions of the contract agreement.
The SAC also approved revision of the DPR to exclude the work already executed and to include only the balance works, updation of the DPR to the present price level and re-tendering the balance works of the project under EPC mode.
However, even several months after the SAC approval no company has been selected for revision of Detailed Project Report, which otherwise is the foremost step towards execution of balance work of the project, sources informed, adding “it is a matter of serious concern that a project of just 48 Mega Watts has not been completed even more than a decade after its planning”.
“The entire expenditure on the project till date has remained unfruitful in the absence of restart of the work”, they further said while expressing inability to specify the time-frame for re-start of work and completion of project.
In the month of May last year, the Jammu and Kashmir Power Development Corporation had mentioned in the list of under construction hydro projects (above 25 Mega Watt) that Lower Kalnai project would be completed by 2022-23 subject to re-start of work. “Even this deadline is unlikely to be met in the light of the fact that long drawn exercise is to be conducted for allotment of contract for execution of left-over work”, sources said.
They further said that large number of local contractors who were engaged by M/s Coastal Projects Limited and have carried out different works by spending huge money from their own pockets or by taking loans from the banks have not been given payments till date.
They approached the Government a number of times for release of their pending payments by utilizing the money lying with the Power Development Corporation after the encashment of Performance Bank Guarantees (PBGs) but till date no decision has been taken.
“No doubt Government is required to follow the procedure for fresh allotment of pending work but at least some decision should be taken on release of our payments”, a number of contractors said.

LEAVE A REPLY

Please enter your comment!
Please enter your name here