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Ahmedabad, Nov 5: After a seven-year stalemate, Sumitomo Corporation of Japan has finally agreed to provide 2.85 billion Yen -- equivalent to Rs 85 crore-- loan to Sardar Sarovar Narmada Nigam Ltd (SSNNL) to part finance import of 2x200 mw turbine-generator sets for the 1450 mw inter-state hydel project under construction on Narmada.
Addressing a joint press conference here on Wednesday, Narmada development minister Jay Narayan Vyas and SSNNL chairman Bhupendrasinh Chudasma said the supplier's credit as per the external commercial borrowing (ECB) guidelines was expected to be received in three months. He expected the proposal for ECB pending with the Government of India (GoI) would be cleared soon.
As per the original contract, supply of equipment for the river-bed power house (RBPH) component, totalling 9 billion Yen (Rs 290 crore) was to commence in 1990-91. Equipment worth 9 billion Yen were already manufactured. But, in August 1992, Sumitomo had unilaterally suspended the manufacturing of the sets anddemanded Rs 150 crore as compensation and storage charges from SSNNL (following opposition from certain environmentalist groups in Japan).
In a latest development, Vyas said, the Japanese firm had agreed to waive Rs 150 crore. However, he said, the request for additional amount of 17.2 billion Yen was yet to be conceded by Overseas Economic Corporation Fund (OECF) of Japan for the total contract amount of 24.64 billion Yen for goods and services. As per the latest negotiation, he said, the 2x200 mw equipment likely to be installed in 30 months would be backed up by performance guarantee.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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