Jammu, May 25: Hyderabad based GVK Infrastructure Limited would be asked to pay Rs 155 Crore to the state government for the prestigious Rattle Power Project bagged by it through bidding process recently, official sources told Greater Kashmir.
 They said following the cabinet nod, the Jammu and Kashmir Power Development Corporation (JKPDC) is expected to issue the Letter of Intent (LoI) in favour of the company within next few days, which will enable the company to complete other formalities.
 “We are in the process of issuing the LoI”, the deputy general manager PDC IA Kakroo said, adding, “The process is likely to be completed within a few days following which the company will be informed”.
 He said that Power Development Department (PDD) will execute Power Purchase Agreement (PPA) with the GVK within 30 days from the issuance of LoI, and this agreement would be considered as the actual allotment letter.
 When contacted  the Director GVK Infrastructure Limited, PMK Gandhi said that the company would be able to start the actual construction work only when the LoI is issued by the Jammu and Kashmir government in favour of the company. “We are still waiting for the letter”, he told Greater Kashmir, over phone.
 Meanwhile, sources revealed that the company would be asked to pay Rs 35 Crore within 15- days from the date of issuance of the LoI as per Megawatt premium to the state government.
 Beside this the state would also charge Rs 120 Crore, which includes expenses on the framing of Detailed Project Report (DPR) and rent amount on the land to be acquired by the company. “The charges under this head will be paid at the subsequent stage also”, sources added.

Lastupdate on : Tue, 25 May 2010 21:30:00 Makkah time
Lastupdate on : Tue, 25 May 2010 18:30:00 GMT
Lastupdate on : Wed, 26 May 2010 00:00:00 IST