The state government of Himachal Pradesh in India is gearing up for a rebidding contract for the 960MW Thopan-Powari-Jangi project in Kinnaur district amidst a dispute between Netherlands-based Brakel and Reliance Infrastructure.

Though Brakel was awarded the contract for project earlier in 2008, Himachal Pradesh High Court, however, overturned the allotment following a petition filed by Reliance Infrastructure.
Earlier on 23 April, the state government rejected applications of re-allotment to Brakel and Reliance Infrastructure.

A government spokesperson told IANS that the government would seek fresh bidding of the project as per state’s old power policy of 2008.

In addition, the state has also annulled the company’s upfront premium of INR2.8bn ($60m) deposit for delaying the implementation of the project.

The delay in commissioning of the project is causing the government losses of about INR14bn, according to a recent assessment by the State Infrastructure Development Board (SIDB).