Hindustan Construction Company (HCC) is facing major cash crunch and it has started pinching its reputation, of late. For example, Teesta Low Dam Project Stage-IV has seen no major work at the site since March this year due to HCC’s pathetic financial situation. In the past the project suffered due to frequent Bandhs called by the groups opposing the project and flash floods. Alarmed by the situation, NHPC, the project developer has decided to approach the situation with both carrot and stick. On the one hand, NHPC has decided to extend financial help to HCC to tide over the liquidity crunch and on the other, has decided to lodge counter claim on HCC for the losses incurred and also file idling cost claim on the company.
HCC, despite these developments, may get a helping hand to proceed with the project work at TLDP Stage –IV as NHPC has reportedly agreed to provide an interest bearing advance of Rs. 10 Crore against Bank Guarantee (BG) to HCC to discharge their part of liabilities. HCC had requested NHPC to extend financial assistance to meet the financial liabilities as well as for payment for materials so that balance civil works can be completed at the earliest. Also, NHPC has decided to procure the essential major construction materials such as cement, steel and diesel at the project site the cost of which will be recovered from HCC later on.
TLDP Stage –IV involves implementation of 4x 40 MW hydro power project at about 350 m upstream of Teesta Kalikhola confluence in District Darjeeling, West Bengal.
The project is scheduled for completion in October 2014.
