Bangalore-based GMR Group, which is also engaged in the construction of an international airport at Delhi, will be executing the Bajoli Holi project. The company was chosen through global competitive bidding by the previous Congress government.

Though the company had deposited 50 per cent of its committed upfront premium with the government, the agreement could not be signed because of the elections and model code of conduct.

The Cabinet last month had approved the signing of the agreement with the company after it had deposited upfront premium money. The company had given the highest bid of Rs 91.18 lakh per MW for getting the project.

The government also signed an agreement with another leading company, DCM Shriram Group, for execution of the Chatru (108 MW) project on Chandra-Baga river in tribal district of Lahaul and Spiti.

State’s Principal Secretary (Power) Ajay Mittal, who signed the agreements on behalf of the government, said the government has taken a decision to ensure time-bound implementation of the projects and if the companies fail to meet the deadlines, they will lose the projects.

Beside two mega hydel projects, Mittal also signed agreements for nine other mini and micro projects — one of the key sectors in the state’s hydro-power generation. The total capacity of the projects for which agreements were signed is nearly 318 MW.

The Prem Kumar Dhumal government, in its first Cabinet meeting on January 9, had taken a decision to allot all projects above 5 MW capacity only through global competitive bidding to ensure transparency in hydro-power privatisation.

During the Congress government, projects above 100 MWs were allotted through global bidding and below 100 through MoU route, which had fuelled suspicion about favouritism. This had also caused the government a loss of several lakhs as the companies were not required to pay any upfront premium. “We are in the process of framing more policy guidelines to put the state on the fast track,” Mittal told The Indian Express.