Security concerns over the participation of foreign firms, particularly Chinese ones, in the construction of hydroelectric power projects in sensitive border areas have surfaced once again. Following the bid applications submitted by Chinese companies for participation in the construction of hydel projects only 200-300 km of India?s borders, the power ministry has directed its state-owned power utilities to include a national security clause in all tender documents issued to invite financial and technical bids from pre-qualified bidders.
In its note to the ministry of home affairs, the power ministry has said the national security clause would give the corporation inviting bids the right to accept or reject any bid for any reason, including on grounds of national defence and security, or to even annul the bidding process. ?Any or all bids, at any time prior to award of contract can be rejected under this clause without incurring any liability to the affected bidder or bidders,? the ministry?s note stated.
The power ministry has also assured the home ministry that even if Chinese bids were found to be the lowest, a decision regarding the award of works for the project to such bidders would be taken only after due consultation with the National Security Adviser and other security agencies.
Power ministry officials said the issue of Chinese participation also came up for discussion at another meeting held recently for the Rampur hydroelectric project of Satluj Jal Vidyut Nigam Ltd (SJVNL), located in Himachal Pradesh. Representatives of the ministries of external affairs, home affairs and defence attended the meeting.
?One of the decisions taken was that no agreement or undertaking would be given at this time to any Chinese bidder. SJVNL has been asked to include the national security clause in all future work tenders. Also, the corporation has been advised against signing any agreement or giving any undertaking to a Chinese bidder at the opening of bids,? the source said.
Central power utility National Hydroelectric Power Corporation (NHPC) has also informed the power ministry that Harbin Power Engineering Company of China has applied in response to its pre-qualification application, called for the execution of electro-mechanical works for its Kotlibhel hydel power project.