NHPC to press joint venture to fulfill contract

NHPC will ensure that HJV fulfill its role as the leader of the consortium for LOT PB-2 project. It also wants to impose liquidated damages for the latter’s shoddy performance.

Himachal Joint Venture was constituted by Maytas Infra Limited, Sri Shakaranarayana Construction Company and Nagarjuna Construction Company to successfully bid for fourth head race tunnel of the project contract, dubbed LOT PB-2.

HJV is nowhere to be found at the project and left SSCC is working under power of attorney granted by the other two constituents.

The National Hydroelectric Power Corporation is free to terminate the contract but this move would be fraught with difficulties and time consuming. The delay cause additional interest to accrue on the amount already spent on the project, along with further cost escalation due to increase in time. The per-unit rate charged for excavation by the new contractor would also be higher, because new equipment has to be deployed for the balance work.

It would also be very difficult to find contractors interested in taking up the uncompleted works of another contractor.