The centre will give Rs 600 crore to the corporation as equity for executing the project. Although, under its previous offer, National Hyrdoelectric had sought 100 per cent financing by the EPC contractor, the new tender will seek about 70 per cent financing. It is not decided whether the government will extend guarantees to the funds raised by the new EPC contractor for executing the project.

Till recently, the consortium's offer was being seriously pursued by the corporation, which is evident from the fact that the validity period of this consortium, which was to expire in May this year, was extended by three months by the corporation's board.

The hectic negotiations, which tookplace between the two on bringing down the project cost in view of the fall in global rates for turbine, finally fell through. Sources added that this issue was discussed at length in the last board meeting held on July 9 when it was decided by the power ministry officials, along with NHPC bigwigs, that fresh bids should be invited.

Even the Public Investment Board had turned down the ICHC bid of Rs 2,345 crore when the detailed project report, along with the final evaluated cost, was submitted to the Central Electricity Authority (CEA) in September last year. Subsequently, the corporation submitted a fresh report for Chamera-II to the authority, amounting to Rs 1,817 crore with a debt-equity ratio of 1:1. The techno-economic clearance (TEC) from the CEA is expected next week.

Sources explained that while the corporation, under the report, has quoted Rs 1,817 crore with a execution period of seven years, the ICHC's Rs 2,345-crore offer was for executing the project within five years.

Keeping this inmind the government had decided to increase the validity offer of the consortium by another three months.

Meanwhile, few other global companies from Scandinavian countries and Austrian companies have also evinced interest in the project, a decision on inviting fresh bids has already been made.

Under the new global tender, to be invited shortly by the corporation, bidders will have to furnish Rs 10-million bank guarantees for six months as bid guarantees, and the time for completion of the project will be five years.