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Contractual issues at its hydro power project in Himachal Pradesh may deter state-run NHPC’s ambitious plans of adding over 5,000 MW by March 2012.
The company which is setting up a 800 (4x200) MW hydro power project at Parbati in Himachal Pradesh is fighting a legal battle with the plant’s contractor, Robbins.
“With Parbati there is a big contractual issue...NHPC is involved in litigation with one of the contractors, the matter has been on for the past 3-4 years,” a Power Ministry official told PTI.
He said the matter is in district court and the judgment was expected next month. Parbati-II project was earlier due for commissioning during the current XIth Five Year Plan Period (2007-2012) and now the commencement of the project has been postponed to July, 2014.
The dispute with the contractor has also led to rise in the cost of the project...it has increased to over Rs 4,200 crore from around Rs 3,900 crore earlier.
NHPC had planned to add about 5,322 MW of power generation capacity during the current plan period but with more than five of its projects facing some obstacle or the other the achievement of the target seems unlikely.
This, in turn, would adversely impact the Power Ministry’s goal of adding 62,000 MW of electricity by March, 2012.
The current installed generation capacity of NHPC stands at over 4,000 MW.
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