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| Norwegian consortium likely to challenge govt’s decision on Sawlakote project | | |
Jammu, Nov 16
Jammu and Kashmir government is likely to face tough legal battle in next few months over the decision by its cabinet to cancel 1200MW Sawlakote Hydro Project contract allotted to a consortium of SPAS of Norway, Qzaltin of Turkey and Hindustan Construction Company.
Highly placed sources said that SPAS Norway, which has spent crores of rupees, for the design of the prestigious project is all set to challenge the decision of the government. Though the cabinet has directed the cancellation of the project, the consortium is yet to receive any written order in this regard, sources told News Agency of Kashmir, here today.
“This decision is arbitrary”, JL Koul, Liaison officer of SPAS Norway told News Agency of Kashmir adding, “The Company has not been given even a single opportunity of being heard”.
Koul said that the government has not issued any written order with regard to the cancellation of the contract, “as such as of now we are still executing company for the construction of the project”.
The liaison officer claimed that he came to know about the decision through the media and same has been conveyed to the management of the company in Norway. “Though it is the management of the company which has to take final decision in this regard, it is sure that government cannot cancel the contract in such an arbitrary manner”, he added.
The officials SPAS Norway have been claiming that the entire design and planning of the project is the brain child of the Company, which has spent crores of rupees for it so far.
“Number of foreign experts were working in the state and we have incurred crores of rupees on the design of the project so far”, JL Koul claimed.
Legal experts also believe that the government can not cancel the contract when the final approval has been given and company has already started its work. “Though the cancellation and non-cancellation of an agreement mostly depends on the terms and conditions of the contract, the consortium have the legal remedy available with it to challenge the order”, said Advocate Firdous a Tak.
He believes that if the company had registered the design of the project under Design Act the consortium can give a tough battle to the government on various legal forums.
The prestigious power project was to be executed by a consortium comprising of SPAS of Norway, Qzaltin of Turkey and the HCC with a cost of Rs 4,312.5 crore. The project was to be executed in seven and half years as per the terms and condition of the agreement.
The 1200 MW Sawlakote hydel project, planned over river Chenab in militancy infested district Doda, was being looked at with suspicious eyes since it was allotted to the consortium in the year 2001.
Earlier the power generation capacity of the project was 600 MWs. When the coalition government took over the reign of powers in the state the contract was revised and the capacity was increased to 1200 MWs with almost same project cost.
The state cabinet in December 2005 gave final node for the execution of the work and a formal order was issued in January 2006. Sources said that the government even issued addendum in the month of April.
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