HP Govt. restrained from signing pre-implementation agreement

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Shimla, May 2 (UNI) The Himachal Pradesh High Court has asked the state government not to sign pre-implementation agreement (PIA) for two mega projects with Netherlands-based Brakel Corporation till May 14.

The orders were passed by the court yesterday after the company failed to pay the highest upfront money for being allotted Jangi Thopan and Thopan Powari (960MW) hydro projects.

The projects were offered to Brakel company through international competitive bidding in December 2006 on the condition that the company that offered the highest upfront would be handed the same.

The company had to pay 50 per cent of the upfront money to the government before the signing of the MoU.

However, following the company's failure to pay the upfront money on time, a rival bidding company had taken up the matter to court, which asked the government not to sign the PIA with the company till May 14 the next date of hearing.

Earlier, Brakel company agreed to meet all the five terms laid down by the government for withdrawal of its show-cause notice and sign the PIA after the state government issued a show-cause notice to it and proposed cancellation of the project.

Besides, paying a sum of Rs 173 crore as upfront money for the projects, it had also deposited a sum of 20.56 crore as interest for the period it had not deposited the money.

The company also agreed to all government terms laid down by the Cabinet for signing of the PIA and requested the government to invite it to sign the PIA.


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