The Himachal Pradesh government has put brakes on the 480 mega watt Jangi Topan and Thopan Powari power project allotted to Brakel Corporation N V of the Netherlands in December 2006 calling for more information from the company to be sure of its credentials.

The company had deposited the first installment of upfront premium and has been served show cause notices thrice for non-payment of the balance. The total upfront premium stood at Rs 173.42 crore. In a letter to Brakel, the state asked it to deposit the amount immediately and also stick to the timeframe for completion of project as agreed when the project was awarded.

When contacted, Himachal Pradesh chief minister, Prem Kumar Dhumal told The Indian Express, “It is true that we have not awarded the project to Brakel Corporation so far. We have asked them to prove the credentials of M/s Brakel Kinnaur Power Private Limited that is actually executing this project for the allottee company. We have “Deam Gesterkamp, director, Brackel Corporation NV, said, “We have received a letter from the Himachal Pradesh government. We will do everything to oblige the government to go ahead with this project. I think that we can complete the project within the set time frame.”

Dhumal said there were a couple of more issues the state had taken up with the company. These included a charge of 12 per cent interest rate for delay in premium payment compared with 2 per cent specified earlier and also settlement of disputes under the Indian Arbitration and Reconciliation Act and not in the International Court of Commerce and Arbitration.

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