HP seeks Rs 2,713 cr in damages from Dutch firm for hydel plan delay

Apr 02 2014, 14:07 IST
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SummaryAfter cancelling Brakel Corporation of Netherlands' bids for the Jangi Thopan and Thopan Powari hydel projects, Himachal Pradesh

After cancelling Brakel Corporation of Netherlands' bids for the Jangi Thopan and Thopan Powari hydel projects, Himachal Pradesh has claimed Rs 2,713 crore in damages from the developer for revenue loss due to delay in the implementation of projects.

Himachal has also now decided to retain Rs 284 crore paid by the firm as upfront premium.

The state government had cancelled Brakel's bids in 2009 after the Himachal Pradesh High Court found the company guilty of misrepresenting facts about eligibility to participate in the auction for the two projects. Sources said the state government on Friday issued notice to Brakel for forfeiture of the premium amount.

Brakel had moved the Supreme Court against the HC order and to restrain the state government from reallocating the two projects. But on Tuesday, the company withdrew its plea filed in the Supreme Court. Sources said Brakel is now expected to challenge state government's decision to retain premium paid by the company despite cancellation of its bids.

The developer had bagged the two projects, each with 480 mw capacity, in competitive bidding in 2006 by paying the highest per mw premium. However, the allocation of the projects was later caught in litigation as Reliance Infrastructure, which came second in the bidding race, challenged the decision in the Himachal HC, saying Brakel had misrepresented facts relating to eligibility.

In 2009, the court found merit in Reliance Infrastructure's allegations and ruled illegal allocation of the projects to Brakel.

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