Shillong, Apr 17: Power Minister James K Sangma on Tuesday informed that the 22 mega watt Ganol Small Hydro power project is progressing well and about 50 percent of the total work has been completed.

Replying to a cut motion moved by opposition Congress legislator, PT Sawkmie, Sangma said that the project which is expected to relieve the Garo Hills region from frequent interrupted power supply was approved by the government at a cost of Rs 177.52 crore.

The Project consists of a 35 metre high Dam, a 2 Km long Tunnel and a surface Power House of capacity 3×7.5 MW.

He informed that the state government approved the Project cost of Rs. 177.52 Crores in 2008 after a Techno-Economic Clearance from the Ministry of New and Renewable Energy , adding the Tender was floated in September 2007 but due to some problems especially the objection of the MOEF (NER), the Tender could not be processed further.

Thereafter, many exercises were carried out to revive the Project. Ultimately, the Empowered Committee of the State Government in 2010 advised Me.E.C.L. to take up the work on Turnkey basis as a single package.

However, due to financial constraint, MeECL decided to carry out the project with 2 units only but reverted back to 3 units on the directives of the State Government , adding the process of Tendering got underway in 2011-12 when the L1 Contractor was identified.

A Letter of Intent was issued in December 2012, but due to very high cost of the Project, the MeECL decided to take up the matter with the Government for providing Viability Gap Funding (VGF) to reduce the generation cost and provide some relief to the consumer of the State.

According to Sangma, the Empowered Committee in July 2013 advised the Corporation to find out ways and means to reduce the cost of the Project and In the next meeting of the Empowered Committee in December 2013, the Corporation was advised to take up the work with VGF to be provided by the State Government based on which the Board of Directors of the MeECL decided to issue necessary Work Order to M/S Patel Engineering Ltd., Mumbai (L 1 Contractor) for construction of Ganol Small Hydro Project.

The matter was again taken up with the Government for providing VGF, and based on the approved notesheet of the Government, the Board of Directors approved the Revised Estimate of the Project at Rs. 356.43 Crores in 2014.

He said the revised cost estimate is prepared based on the rates quoted by L1 contractor for the major components of work and Meghalaya PWD SORs for minor construction works like roads and buildings.

The agreement with the contractor was signed in June 2014 and the constractor was officially allowed to take possession of the work at site in August 2014.

The approved estimate of the project was forwarded to the MNRE along with the funding pattern decided by the government and after vetting sanctioned a subsidy of Rs 20 crores, he said adding that the NABARD also sanctioned a loan of Rs 115 crore under RIDF scheme based on the revised estimate of Rs 356.43 crore and the funding pattern which exceeds its limit as the administrative approval of the government till date is only for Rs 177.52 crores.

According to him, the revised cost estimate of the project is required to be administratively approved by the power department to enable the NABARD to regularise the loan approved in excess of norms of the organization and to enable the MeECL and the government to finalise the balance fund of Rs 120.82 crore required to complete the project.

Sangma further informed the department advised the MeECL for preparation of the re-revised estimate of the project but however they feel that this exercise at present will not give a clear picture of the completion cost of the project as only 35 per cent of the work is completed and other important drawings like the dam, and especially power house where the model test of the machines was just concluded in the month of October 2016.

“They feel that the revised estimate may be prepared at the end of the next working season, that is in March-April 2017 where all the drawings will be ready and the completed work will be about 75 per cent or more,” he said.