Pumped storage projects: OHPC hardwires LD and GST risk into 33 kv package
The Pumped storage projects pipeline in Odisha tightens execution risk allocation as OHPC issues a turnkey tender for a 33 kv link from 220/132/33 kv GSS Jayapatna to the 600 mw Upper Indravati pumped storage project. The two-part bidding system combines techno-commercial scrutiny with sealed price evaluation.
For Pumped storage projects, Clause 2.19 fixes LD at 0.5% per week of delay, capped at 10%, calculated on contract price including GST. Inclusion of GST expands the penalty base. Clause 2.4.4 further shifts GST escalation during extended completion periods onto the contractor, while mandating benefit pass-through in case of tax reduction.
This fiscal framing raises risk exposure for EPC contractors involved in Pumped storage projects, particularly where hydro-site right-of-way and terrain factors can disrupt schedules. Advance release is linked to a 5% PBG and executed agreement, tying liquidity to bank-backed security.
From an Indian Power news perspective, such structuring signals conservative capital protection by the promoter. Auxiliary evacuation links are treated as mission-critical infrastructure underpinning hydro synchronization timelines.EnergylineIndia.com observes that if similar clauses appear in future hydro-linked works, Pumped storage projects could witness recalibrated bid pricing reflecting GST volatility buffers and delay-risk premiums, Pumped Storage Projects, OHPC, Hydro Infrastructure, News On Renewable Energy.
