Addressing a joint press conference here on Wednesday, Narmada development minister Jay Narayan Vyas and SSNNL chairman Bhupendrasinh Chudasma said the supplier's credit as per the external commercial borrowing (ECB) guidelines was expected to be received in three months. He expected the proposal for ECB pending with the Government of India (GoI) would be cleared soon.

As per the original contract, supply of equipment for the river-bed power house (RBPH) component, totalling 9 billion Yen (Rs 290 crore) was to commence in 1990-91. Equipment worth Rs 9 billion Yen were already manufactured. But, in August 1992, Sumitomo had unilaterally suspended the manufacturing of the setsand demanded Rs 150 crore as compensation and storage charges from SSNNL (following opposition from certain environmentalist groups in Japan).

In a latest development, Vyas said, the Japanese firm had agreed to waive Rs 150 crore. However, he said, the request for additional amount of 17.2 billion Yen was yet to be conceded by Overseas Economic Corporation Fund (OECF) of Japan for the total contract amount of 24.64 billion Yen for goods and services. As per the latest negotiation, he said, the 2x200 mw equipment likely to be installed in 30 months would be backed up by performance guarantee.

He said the agreement with Japan was for part execution of 6x200 mw RBPH, scheduled to be completed in three phases at an interval of two years.

"As far as the 250 mw canal head power house (CGPH) component, comprising 5x50 mw sets, is concerned," Vyas said, "it is ready for power generation, but for the delay in raising the height of the Sardar Sarovar Project (SSP) dam to at least 110 metres (from mean sea level)to build the minimum water pressure for running the turbines."

Both Vyas and Chudasma exuded confidence that the apex court would soon complete its hearing, scheduled to begin on Thursday, on the issue of resettlement and rehabilitation (R&R) of the project-affected persons (PAPs), pending in the Supreme Court. They said the Gujarat government had already expressed in its affidavit to complete all directives of the Narmada Tribunal or the Apex court.