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Contractor playing truant on New Ganderbal HEP: Naqash

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JAMMU, FEBRUARY 05: Minister of State for Power, Asiea Naqash today informed the Legislative Assembly that the government is exploring the options for execution of 93 MW New Ganderbal Hydroelectric Project after the successful bidder failed to meet the formalities.

“The project was appraised by Central Environment Authority (CEA) in November-2012 and put to tender on 18/07/2011 for implementation through competitive bidding system,” the Minister said while responding to a Calling attention Notice moved by MLA Sheikh Ishfaq Jabbar in the House.

The Minister said the Hindustan Construction Company (HCC) emerged as successful bidder with 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 further said that the matter was considered by State Cabinet in its meeting on 28/04/2017, wherein a Cabinet Sub-Committee, under the chairmanship of   Dy Chief Minister was constituted for implementation of project with the direction to place their recommendations before State Cabinet.

“State Cabinet in its meeting held on 16.06.2017 accorded approval to award 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 said and informed that as a prerequisite for signing the contract, the contractor has to submit performance bank guarantee equivalent to 109/0 of the contract sum i.e Rs 82.0 Cr within 28 days of issuance of notification of award.

“But due to inability of M/s HCC, the successful bidder to furnish performance guarantee, a prerequisite for signing of contract, despite repeated extensions in time of submission for the same, the bid security has been encashed,” she informed further.

However, she said the options for execution of the project are being explored adding that the completion period for the project is 48 months including mobilization time from issuance of notification of award.

She said, meanwhile, preconstruction activities like construction of access roads/approach roads to various project components sites stands 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.

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