Even as land acquisition hurdles are posing a trouble to Jharkhand Integrated Power Limited’s (JIPL’s) 4,000 MW Tilaiya ultra mega power project (UMPP), the Reliance Power wholly owned subsidiary now has to resolve the critical issue of a stupendous Rs 3,131 crore increase in Rehabilitation and Resettlement (R&R) cost over the original pre-bid estimates.
The increase in project cost, on account of the substantially higher R&R expenditure, has led most of the lenders to doubt the bankability of the Tilaiya project.
The power utility, to avoid any possible repercussions, has sought in principle approval from the procurers for this additional expense and the complete recovery of the amount.
through the tariff mechanism.
During the pre-bid stage, Envirotech and Green C consultants, appointed by Power Finance Corporation (PFC) to assess the extent of R&R involved in the project, had pegged the R&R expenditure at Rs 481 crore for both coal block and power plant areas.
Source: Industry Monitor
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