Other States

Rajasthan government initiates action over delay, cost escalation of Kalisindh Thermal Power Project

The Rajasthan government has initiated action over the delay in the works of the Kalisindh Thermal Power Project's first and second units in Jhalawar district, which has led to its cost escalation by ₹200 crore. Chief Minister Ashok Gehlot has approved the Finance Department’s proposal to increase the project’s cost from ₹9,479.51 crore to ₹9,680.03 crore.

Mr. Gehlot gave instructions on Monday for taking administrative action against the government employees and the private firm responsible for delay in the project. The work for establishing unit-2 could not start on the scheduled date in July 2014, which caused an increase in the project’s cost.

Mr. Gehlot said the responsibility of the firm concerned would be ascertained and the liquidity damages charged for delay. The amount collected on account of liquidity damages will be adjusted against the project’s cost to revise it.

Official sources said here that the proposal approved for cost escalation also included sanction for an additional amount of ₹40 crore as the State’s share, which was 20% of capital cost of the project. But the State government will provide this amount within the limit of its share for the project cost allocated in the 2019-20 State Budget.

The Kalisindh Thermal Power Station, situated 12 km away from Jhalawar town, is operated by Rajasthan Rajya Vidyut Utpadan Nigam.

The plant gets water supply from the Kalisindh dam reservoir near Bhanwarasi village, while the coal is sourced from Parsa East and Kanta Basan coal blocks in Chhattisgarh.

Meanwhile, the State government has started reworking on the single window system for industries to make it more transparent after Mr. Gehlot directed the officials to implement a revised version of the mechanism by the year-end. Mr. Gehlot said the changes would keep the entrepreneurs at ease for setting up their ventures by applying at a single desk.

Long-term policy

The Rajasthan State Industrial Development and Investment Corporation is also formulating a long-term policy for new industrial zones to facilitate the allotment of land to investors for establishing their industries at suitable locations and affordable rates. Mr. Gehlot said at a review meeting here that the policy would have provisions for safeguarding the interests of workers in the event of dissolution of an industrial unit.

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Printable version | Aug 14, 2020 4:44:23 AM | https://www.thehindu.com/news/national/other-states/action-initiated-over-delay-cost-escalation-of-power-project/article29779952.ece

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