Uttarakhand govt grants permission to mortgage lease rights to raise funds for the power project
Hyderabad-based power and infrastructure major GVK, which is building the 330-Mw Alaknanda hydel project in Uttarakhand, has got a boost with the state government granting permission to mortgage the lease rights to raise funds for the power plant.
GVK can now raise funds from the consortium group of lenders for the project where the company requires an investment of Rs 2,100 crore.
The Alaknanda project is being built on the river Alaknanda near Srinagar town in Pauri district.
Powered by the new government’s sop, GVK officials told Business Standard they would now finish the project nine months ahead of the schedule completion in 2012. “We can now complete the project in 2011 itself,” said P V Prasanna Reddy, CEO and director of GVK Power.
Last year, the government had suspended construction activities on the dam site following protests from locals over allegations that GVK was disposing ground material into Alaknanda river resulting in environmental hazards.
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GVK had bought a majority stake in Alaknanda Hydro Power Company from Tata Power, which in turn had bought from Synergy in 2003 and changed the name of the project from Dunkan North Hydro Power Company to Alaknanda Hydro Power Corporation.
Before Synergy came into picture, it was Dunkan, which wanted to construct the project.
Though the project was conceptualised in the 90s, the construction work could not start due to various reasons. “All these previous companies did not show any enthusiasm in starting the construction work and subsequently GVK was allowed to take over the project,” said a power department official.
Meanwhile, GVK has also agreed to elevate the Dhari Devi temple, which is coming up under the reservoir of the dam. “This temple would be elevated to a height of 19 meter and necessary infrastructure would be built in this regard by the company,” said Reddy. The company would spend Rs 10 crore for the elevation of the temple and creating other facilities for the locals.
The government is likely to get 12 per cent of the power from the Alaknanda project free of cost as part of royalty. The government is now looking toward private projects with high hopes after it suspended its two major hydel projects – 480 Mw Pala Maneri and 381 Mw Bhaironghati on the river Bhagirathi — following protests by environmentalists last year.