India: HCC, the civil works contractor for NHPC's Teesta Low Dam Project Stage IV (TLDP-IV), has resumed civil works that had been stalled for over eight months. Works halted on 20 March 2013 as HCC feared termination of the contract.

HCC had earlier noted that the work had stalled due to a severe financial crunch being faced by NHPC and accordingly requested that NHPC extend financial assistance to the tune of US$8.46m to HCC for resuming works. While NHPC agreed to extend the requested assistance, civil works contractor HCC refused to accept the proposal as it is and sought an increase beyond US$8.46m.

Aggravated with the constant modifications in terms of financial assistance and non-resumption of works, NHPC shot a missive to the contractor on 3 December 2013, directing the latter to restart the works within 7 days, failing which NHPC would initiate the action for termination of contract. In response, HCC has started the work of dewatering in the RCC dam pit and preparatory work for second stage concrete in the power dam area.

HCC has presented a final proposal to NHPC that the company has agreed to present to its Board. HCC has requested that NHPC to provide US$3.25m initially for clearing the past liabilities and US$9.76m for various construction material purchased. On this account, NHPC has requested the Board to release the interest bearing advance of US$32,530 to HCC for discharge of its partial past liabilities. The Board shall further resolve that all the construction materials required for balance works shall be procured directly by HCC after certification by the project. NHPC shall extend the assistance under this head in a phased manner based on requirement of material which shall be interest bearing and limited to US$97,590 against bank guarantees.