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Jammu, Nov 16 (UNI) The Jammu and Kashmir government has decided to float global tenders for construction of 1,200 MW Sawlakote hydel power project over river Chenab in Ramban area of the hilly Doda district.

The State Cabinet, which met here last night, has cancelled the sanction for construction of the Rs 7,340 crore project to the consortium of Spass International from Norway, Ozaltin Construction Company from Turkey and Hindustan Construction Corporation (HCC).

The Cabinet with Chief Minister Ghulam Nabi Azad in the chair, unanimously decided to float global tenders for the hydel power project, after a Cabinet Sub-Committee submitted its report to the State Cabinet.

The final decision regarding the fate of this important hydro-electric power project, which has been delayed due to lack of arrangement for funds, was taken by the Cabinet Sub-Committee, constituted by the Chief Minister, in a meeting held here last morning.

The members of the Cabinet Sub-Committee included Minister for Power Nawang Rigzin Jora, Minister for Health and Medical Education Mangat Ram Sharma, Minister for Agriculture and Cooperatives Abdul Aziz Zargar, Minister for Food, Consumer Affairs and Public Distribution Taj Mohi-ud-Din, Minister for Housing, Urban Development and Forest Qazi Afzal and Minister for Transport Hakim Mohd Yasin.

As per reports, a detailed project report was submitted by the state to the Central Electricity Authority of India in March 2006 but the funds for the construction could not be managed as the Central Power Finance Corporation refused to lend the money to J and K with remarks that guidelines of the Union Ministry of Power were not followed by the state while allotting the contract.

Similarly, the other lenders also refused, saying that process of competitive bidding (global tenders) was not performed while going in for the contract by the state.

After this obstacle, the State Cabinet had resolved to review the contract and the sanction accorded to the consortium of Norway, Turkey and India.

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