Hinduja power faces big cost overrun

  • 02/02/1998

Various delays have led to the project cost of the Hinduja National Power Corporation Ltd in Visakhapatnam shooting up by Rs 300 crore to Rs 4,300 crore. One of the major fast-track private power projects in the country, it has been dogged by negotiations since 1992. The controversy over washed coal facility, then the fuel supply agreement (FSA) , and the power purchase agreement (PPA) revision have all delayed the project and also inflated its cost, says a company source. Further, the Centre is yet to provide central guarantee to the project.