The Supreme Court has issued a notice to the Himachal Pradesh government for quashing million-dollar 960 MW Thopan-Powari-Jangi hydropower project in Kinnaur district awarded to Netherland-based firm Brakel Corporation by inviting fresh bids into it.

The State authorities confirmed that the apex court issued the notice to this effect on March 15 after hearing an appeal filed by Brakel.

Considering the appeal filed by Brakel challenging earlier ruling of the Himachal Pradesh High Court that on Oct 7, 2009 had ordered cancellation of the allotment of the project to Brakel on a petition filed by Reliance Infrastructure, one of the bidders, the apex court also attached the upfront premium deposited by the firm to the tune of hundreds of crores into this project.

The High Court had allowed the writ petition and quashed the decision of the council of ministers dated November 25, 2008, by terming it arbitrary, illegal and irrational.

The State High Court had gone against the allotted firm by maintaining that Brakel misrepresented the allotment of the two projects -- Jangi Thopan and Thopan Powari -- of 480 MW each, which were later combined into one project.

The court had stated that as Brakel was being favoured in this allotment, it cancelled the allotment and also ordered the State to take fresh decision to re-advertise the said projects or to act on the basis of the old tender.

Later the State government invited fresh bids for the projects and also imposed a penalty of Rs 280.69 crore (60 million dollar) on Brakel for delaying the implementation of the project.

The Supreme Court division bench of Justices H S Bedi and Aftab Alam has referred the case to the division bench of Justices Aftab Alam and B S Chauhan as they have substantially heard the matter.

UNI