The intriguing battle over the high-stake Jangi Thopan Powari hydro-power project, which the Brakel Corporation has fought both in the government and outside, may have ended after the Cabinet’s bail out. Yet, this is unlikely to make Brakel’s journey to the state’s hydro-power sector smooth, with the state government raising questions on the allotment process followed by the earlier Congress government.The BJP government may also not find itself comfortable in defending its actions, and the confusion it created regarding the mega project. These include its decision to first return the upfront premium, later encashing it and recovering penal interest, and yet sticking to the cancellation move. Similar observations were also made by the high-power committee constituted by the government, along with the infirmities it had detected in the bid document. The government’s action may face legal scrutiny. In addition, the inordinate delay in the execution of the project is likely to remain in focus. Yesterday’s Cabinet decision has cleared the way for withdrawal of the cancellation notice earlier served on the company. This will be followed up by signing of the Implementation Agreement. And now, all eyes are yet set on Reliance Energy’s next move to get the process stalled. Reliance had opposed fresh bidding of the project, yet asked for cancellation of the allotment to Brakel. An official note circulated after the Cabinet speaks of infirmities in the company’s bid document. It has recommended the state electricity board to change its bid document as well as technical evaluation procedure for future projects. “It should not does not allow the financial bids of such parties to be opened, which cannot display the required financial strength,” the Cabinet advised. There were a dozen other companies whose bids for this project, and seven other projects, were evaluated. Infirmities were found in every bid document, which were condoned by HPSEB’s technical committee, the Infrastructure Development Board (IDB) headed by the Chief Secretary, and finally the Cabinet. Blaming it on the Congress government, the Cabinet yesterday said that when Brakel Corporation made the tender bid along with its consortium partner, the government knew that the company, as the lead partner, did not have any financial strength. “It overlooked the aspect, and on the basis of one partner in the consortium i.e. Standard Bank, the financial strength marks were awarded. This was despite the fact that no definite commitment of equity participation was made by Standard Bank,” observed the Cabinet.The Cabinet was of the view that since the infirmities were consciously overlooked by the previous government, legally a successor government cannot blame the company in this regard. “Legally, it is not possible to back out from the allotment, since the contract has been established with the payments by Brakel. Now we want the project to be completed in time, so that the interests of the state are protected,” said a Himachal Cabinet minister.
