Hearing on Arun III begins

BY KAMAL RAJ SIGDEL

KATHMANDU, April 28 - A high-profile hearing on a lawsuit between two international hydropower construction companies — namely Jindal Steel and Power Limited and Sutlej Jal Vidyut Nigam, and the government — over bidding on the 402 MW Arun III hydropower project commenced on Monday at the Supreme Court.

Jindal had moved the apex court against the government and Sutlej, claiming the decision to award the project to Sutlej was illegitimate since its initial bid offer was lower. In its initial bid, Sutlej had offered to give 4.5 percent of energy produced, which later increased to 22 percent. The government had decided to award the project to the company offering the highest amount of free energy.

GMR, the highest bidder, had offered 24 percent free energy, but withdrew after bagging the 300 MW Upper Karnali. Jindal claims it was initially the second highest bidder offering 21.9 percent free energy in contrast to Sutlej's 4.5 percent, therefore the government had to hand over the project to Jindal.

Anil Sinha, pleading for Jindal, argued the government had offered Sutlej a second chance to increase the bid without informing Jindal.

However, the government claims Sutlej was the second best bidder.

Posted on: 2009-04-27 21:54:53 (Server Time)
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