Jaiprakash Power Ventures violated norms in Karcham Wangto project: CEA panel report.

The Central Electricity Authority's fact-finding committee report on Jaiprakash Power Ventures' 1,000 MW Karcham Wangto hydro power project in Himachal Pradesh states that the developer violated norms to increase the installed capacity by 200 MW.

The report, expected to be considered on Friday by the apex body of the CEA, could create a hurdle for the closure of Rs. 12,500 crore deal where Anil Ambani's Reliance Power is to buy out all hydro power assets of Jaiprakash Power Ventures (JPVL).

The deal was particularly important for the debt-laden Jaypee Group, which is selling assets to reduce its loans. With over Rs. 56,000 crore of group level debt, Jaypee Group was trying to trim its debt by Rs. 15,000 crore in the current fiscal.

While both Reliance Power and Jaypee declined to comment, sources associated with the two companies said Reliance Power is closely watching the developments.

According to the fact-finding committee report seen by Business Line, JPVL has increased capacity at Karcham Wangto to 1,200 MW against the 1,000 MW techno-economic clearance (TEC) given to the project by the CEA.


HBL