NHPC advances Rs 10 crore to mitigate contractor's cash crunch

NHPC has now approved an interest bearing advance of Rs 10 crore against a secured bank guarantee to Hindustan Construction Company, contractor of its Uri-II hydroelectric project. Thge latter is experiencing a cash flow crunch.



Further, NHPC`s board of directors are in the process of considering an additional interest bearing advance of Rs 15 crore to HCC.

The project has not seen any progress towards completion of the head race tunnel (HRT) lining, a milestone critical for the 240 MW HEP, in the month of October, contrary to its progress in September. The balance works stand at the same level as the previous month, with 32 m of overt lining and 40 m of inert lining yet to be finished.

The works associated with tail race tunnel lining have been expedited. The progress of inert lining fell short of its target by 24%, with 435 m out of 573 m achieved during
the month.

The project cost is now being anticipated at a total cost of Rs 1,794 crore, 5% higher than earlier level of Rs 1,706 crore. The cumulative expenditure on the project stands at Rs 1,575.98 crore, up to October 2011.