JAMMU: The 93-megawatt New Ganderbal Hydroelectric Project continues to face delays and financial uncertainty, with multiple failed tendering attempts since 2012. The government has disclosed that despite three rounds of bidding over the past decade, the project remains stalled due to contractor defaults, lack of bidder interest, and concerns over its economic viability.
The information was presented by the government in response to a question in the assembly regarding the status of the project. The first tendering process, initiated in 2012, resulted in the contract being awarded in 2017 to Hindustan Construction Company (HCC) for Rs 819.18 crore. However, the contractor failed to submit the required Performance Bank Guarantee, leading to the forfeiture of Rs 10 crore and the cancellation of the contract in 2018. A second attempt was made in 2020 with a package-wise tendering approach, but despite multiple extensions, no bids were received, forcing authorities to cancel the process in August 2020.
A fresh tender was issued in June 2022, and three bids were received. After security clearance from the Ministry of Home Affairs, the financial bids were opened in March 2024, revealing the lowest bid at Rs 1,401.8 crore. Subsequent negotiations brought this down to Rs 1,293.81 crore. However, the total project cost now stands at Rs 1,630.18 crore, pushing the estimated tariff to Rs 8.25 per unit—far higher than the Rs 4.5 per unit tariff of other under-construction hydropower projects in Jammu and Kashmir.
The government has acknowledged the financial challenges and is now formulating a new hydropower policy to attract investment and encourage private participation. The final decision on whether to proceed with the New Ganderbal project will depend on the extent of financial support available from the Government of India, which is reportedly finalising a policy to enhance funding for hydro projects amid increasing competition from cheaper renewable energy sources.
