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Shimla: The Himachal Pradesh cabinet on Wednesday reallocated a multi-million dollar hydropower project, that was under litigation, to Reliance Energy Ltd, an official said here.

The cabinet agreed to allot 960 MW Jhangi-Thopan-Powari Hydel Project in Kinnaur district to Reliance Energy Ltd, a government spokesperson told IANS.

He said that if Reliance Energy does not accept the offer, the project may be re-advertised for fresh bidding.

The cabinet meeting was chaired by Himachal Pradesh Chief Minister Virbhadra Singh.

The Thopan-Powari-Jangi hydropower project, one of the most viable ones, requires an investment of over Rs.7,000 crore and aims to generate 4,000 million units per year.

It requires at least nine years for the project to go on stream, say government officials.

The project was earlier allotted to Netherlands-based Brakel Corp in 2008. It later included Adani Power as a consortium partner in the project.

But the Himachal Pradesh High Court annulled it on October 7, 2009, on a plea by Reliance Infrastructure, one of the bidders.

Brakel moved the Supreme Court but withdrew to pursue remedies suggested by the apex court in its order on April 1 last year.

Reliance Infra’s petition challenging the state’s decision not to allot the project to it is pending in the apex court. The high court wanted the state government to take a “fresh decision as to whether it wants to re-advertise the project or wants to act on the basis of the old tender”.

(IANS)


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