India | Updated Jul 18, 2010 at 03:55pm IST

Uttaranchal power scam: 56 projects scrapped

Abhishek PatniAbhishek Patni, CNN-IBN

Dehradun: The Bharatiya Janta Party (BJP) led government in Uttarakhand was forced to scrap as many as 56 hydroelectric power projects in Uttarakhand after deduction of major irregularities in the bidding process.

In 2008, Uttarakhand government invited bidding process for the construction of more than 56 hydro power projects. Almost all Opposition parties have demanding a CBI probe into the major scam.

"This is a major scam. By just canceling the project the government cannot fool us and look innocent,” said Senior Congress leader Subodh Uniyal.

Sources say, in the bidding process there was gross violation of norms. Accused persons with false addresses were awarded the contracts. More than 741 developers applied for the project but the mandatory detailed project report was not submitted by even a single developer.

Meanwhile, experts say the scrapping of 56 hydro power project means loss of investment to the tune of Rs 6700 crore in the state. These projects were likely to be completed in three to four years following which Uttarakand could have made the state a power surplus state and help in supply to several north Indian states.

At a time when there is severe shortage of power in North India, cancellation of more than 56 hydro power projects will mean undue delay the generation of more than 963 MW of power. But Chief Minister Ramesh Pokhariyal Nishank whose government abruptly ordered scrapping all the projects in one stroke is defending his decision.

"What has been done is on technical ground. There will be no inquiry," said Ramesh Pokhariyal Nishank.

However, though the Uttarakand High Court has dismissed a plea alleging irregularities in the allotment, sources say the government would take a final call on these projects after the completion of the court hearings.

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