The four technically advanced GIS (Gas Insulated) substations to be set up under Integrated Power Development Scheme (IPDS) at four identified locations, are likely to be revived nearly after months of ‘cancellation’.
The four GIS Substations were cancelled by the Power Finance Corporation Limited (PFCL) after the work orders were allegedly not issued to the firm–JK Electric Engineers Private Limited (JKEEPL), which was to execute the projects.
“The ‘cancelled’ project is being revived and the matter is with the Union Power Ministry, which will soon be sorted out,” a Senior Administrative official here told UNI.
Meanwhile an official in the Jammu Power Distribution Corporation Limited (JPDCL) here said that the project worth over Rs 28 crore was cancelled through letter, dated October 5 by the PFCL wrote to the Managing Director.
“Under IPDS of the Union Power Ministry, there were plans to set up four technologically advanced GIS (Gas Insulated) substations in Jammu city at different locations,” they said adding that on October 5, 2020, PFCL cancelled the allocation of funds worth over Rs 28 crore.
They further said that due diligence and all the ground work required for the GIS substations was done and tentatively New Plot, Nai Basti, PHE Mechanical Division office in Gandhi Nagar and Residency Road had been identified as locations where the substations were to be set up.
“These substations were to be set up by JKEEPL who were awarded the Letter of Intent (LoI) on May 26, the firm was awarded the tender, in other words and it conveyed acceptance on July 20,” official sources expressed.
After successful bidding, sources said that the company could get LOI of the tender and was never issued LOA (Letter of Award), which would have meant final allocation of the project.
The Chief Engineer, Projects, JPDCL, Jammu, however, was directed through a letter, which read, “to request you not to carry out any further proceeding regarding the package till further orders as CC-I has yet to take a final call on the said package”.
Pertinently, the PFC had earlier sent a letter to MD on September 9, 2020, regarding the GIS substations, which specifically mentioned, “in case the projects are not awarded by September 2020, PFC to Suo Motto cancel the project and Grants released (if any) to be adjusted or recovered from Utility and to be informed to the Monitoring Committee in next meeting”.
One of the senior officials of the executing agencies, when contacted while confirming about issuance of Letter of Intent (LoI) and later cancellation of the tender without any reasons, told UNI, “we had placed advance orders for the necessary equipment with the Germany based company. We had done this after the award of LoI after becoming the lowest bidder for executing the work on four GIS substations.”
The project had earlier been given two extensions, both this year itself, he claimed adding, “similar type of projects were initiated in the Kashmir valley out of which three GIS substations are being set up in the Srinagar city. These projects are at different stages of construction and work is on in right earnest.”
They further, “these projects were of an utmost importance for Jammu because, setting up of these substations, would have provided uninterrupted power supply.”