JAMMU: Minister of State for Power, Asiea Naqash, on Monday informed the legislative assembly that the government is exploring other options for building the 93-MW New Ganderbal Hydroelectric Project after the company that won its tender, Hindustan Construction Company (HCC), failed to meet the contract stipulations.
“The project was appraised by the Central Environment Authority (CEA) in November 2012 and put to tender on 18/07/2011 for implementation through competitive bidding system,” the minister said in response to a Calling Attention Notice moved by MLA Sheikh Ishfaq Jabbar.
Naqash said the HCC won the tender at an evaluated quoted cost of Rs 820.77 crore, with an additional rebate of Rs 1.59 crore on evaluated quoted cost. “The matter was accordingly placed before BoDs of J&KSPDC in its 72nd meeting held on 21/10/2016 where it was resolved that the matter of award of project may be placed before the State Cabinet for consideration,” she informed.
The minister said that the matter was considered by the State Cabinet in its meeting on 28/04/2017, after which a Cabinet Sub-Committee under the chairmanship of the Deputy Chief Minister was constituted for implementation of the project, with the direction to place its recommendations before the State Cabinet.
“State Cabinet in its meeting held on 16.06.2017 accorded approval to awarding the contract to the lowest bidder at an estimated project cost of Rs 819.2 Cr. Accordingly, notification of award was issued by JKSPDC to the M/s HCC on 08.08.2017,” she informed, adding that as a prerequisite for signing the contract, the HCC had to submit performance bank guarantee equivalent Rs 82.0 Cr within 28 days of issuance of notification of award.
“But, due to inability of M/s HCC to furnish the performance guarantee, despite repeated extensions in time of submission for the same, the bid security has been encashed,” she informed.
Naqash said now other options for execution of the project are being explored. She informed that the completion period for the project is 48 months, including mobilisation time from issuance of notification of award.
She said that pre-construction activities like construction of access roads/approach roads to various project component sites stand almost completed.
“Land acquisition of various components followed by compensation to private owners stands paid, deposited in the collector’s office. Transfer of state land/forest land also stands completed with due compensation for land and trees,” she told the House.