JK HC stays global tenders for Sawalakote project

Jammu, Nov 22 (UNI) The Jammu and Kashmir High Court today stayed the state government decision to invite the global tender for the Sawalakote hydel power project.

The court granted the stay based on a petition filed by the Sawalkote Consortium and has issued an order asking the Jammu and Kashmir state power development corporation (JKSPDC) to maintain status quo on the Rs 7,340 crore Sawalakote project.

The Court has further restrained the government from proceeding with globe tenders. The court has asked the government to respond by December 5 and the next hearing has been posted for December 13.

The Sowalakote Consortium had yesterday filed a petition in the High Court against the state government's decision to cancel the contract for the Sawalakote project.

The Consortium argued the government's decision was unilateral in nature and there was no consultation whatsoever before the decision was taken.

Dr Farooq Abdullah government had awarded the project to Sowalkote Consortium in July 1999. But the financial institutions denied to grant loan for the project. It was alleged that the then state government had not followed the international norm during allotment of work to the Consortium.

The Ghulam Nabi Azad government had cancelled the contract and decided to float global tenders on December 16 with the state cabinet also approving the decision.

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