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Government seeks damages from REL

The Haryana government today said Anil Ambani-led Reliance Energy would have to bear the damages arising out of a delay in commissioning of the first unit of a 600-MW thermal power plant at Yamunanagar. The first unit of 300-MW of the Yamunanagar plant was scheduled to go on stream from November last year, while the second unit was to begin operations on February 20. A letter of intent for setting up the project, estimated to cost Rs 2,400 crore, was awarded to the company on September 30, 2004. Sources said REL had synchronised the first unit of this project in November about four months ahead of the expected commissioning while pointing out that the slippage to a great extent could be attributed to nearly an eight-month delay by state authorities in clearing the drawings. They also said the company should not be penalised for the delays which were beyond its control, adding that the project at Rs 3.49 crore per MW would be the cheapest and the fastest in the country in terms of commissioning. However, Haryana power minister Randeep Surjewala said: "Whatever amount arising out of the failure of fulfilling contractual obligation, they (REL) will pay.' The company was supposed to complete the 2x300 MW unit of power by November 20, 2007 for producing 72 lakh units and the second unit of the same capacity should have started generation on February 20. But it had not been able to finish the job within the given time frame, he added. However, the minister described the process as a

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