Virbhadra Government to refund Rs 280 crore to Adani Power

Virbhadra Government  to refund Rs 280 crore   to Adani Power

Vijyender Sharma

SHIMLA---In a significant Political development,himachal Pradesh's Virbhadra Singh  cabinet decided to refund the upfront premium of Rs 280 crore in lieu of Jangi-Thopan (480MW) and Thopan-Powari (480MW) hydel projects to Adani Power Limited.

With some ministers, reportedly against the idea of returning the premium, heated arguments took place in the cabinet meeting at shimla. Three Ministers of Cabinet was not present at this Meeting . 

According to sources, some ministers were not in favour of the decision and opposed it. But, at the end, the agenda was approved with the condition that upfront premium would be returned only after receiving the money from Reliance Energy.

"Following the cabinet decision, the ground has been cleared for the allotment of 960 MW Jangi-Topan-Powari project. In September 2013, cabinet meeting chaired by chief minister Virbhadra Singh had given its approval to initiate action for damages-penalty against Brakel Corporation in the implementation of Jangi-Thopan-Powari (960MW) hydro project," said the source.

While giving its nod to take action against the company, the cabinet had decided to approach Supreme Court to seek damages to the tune of around Rs 1,365 crore from the company in lieu of general loss. Himachal Pradesh power department had even submitted a proposal to the government to forfeit Rs 280 crore upfront premium paid by Brakel Corporation.

Sources said that on behalf of Brakel Corporation, Rs 280 upfront premium was paid by Adani in lieu of getting partner status in the project. Sources said that premium was paid in two installments to the government between 2008 and 2010.

In the last cabinet meeting held on August 5 this year, the project was offered to Reliance Energy Limited. Further, it was decided that if company would not accept the offer then the project would be advertised afresh for biding.

Sources said that now Reliance Energy has given its consent for the project and the state government has already received a letter from the company to this effect.

"Now, the state government would put forth its stand in the case before Supreme Court. After getting a nod from Supreme Court, the project would be formally allotted to Reliance Energy Limited," added the source.