GVK Group’s Shrinagar Hydro Electric Power Project that suffered damage due to heavy floods in Uttarakhand in June is in the process of preparing an insurance claim for the damage suffered.

Isaac George, Director of Finance and Chief Executive of GVK’s construction business, said the total insurance covers around Rs 2,600 crore for the physical damage, which is when the assets and equipment are damaged physically.

It also covers Rs 400 crore per annum of advance loss of profit policy (which provides insurance cover to meet such contingencies), he said.

“We are working to arrive at a claim figure. Bharat Heavy Electricals Ltd (BHEL) is still to give us the cost of equipment damaged. National Insurance is the lead insurer for the power plant,” George told PTI.

Group Chairman G.V.K. Reddy during the recently-held annual general meeting said the company had appointed a Singapore-based consultant to assess the damage and advise.

Reddy said currently work was going on and the plant would be operational by the first quarter of next year.

GVK is developing a 330 MW hydro project on the river Alaknanda in Tehri/Pauri Garhwal district of Uttarakhand. The construction of this project is nearing completion.

All the civil works are in an advanced stage of completion. It has a 90-metre high (from deepest foundation level) dam, the GVK official had earlier said.

A power purchase agreement has been signed with Uttar Pradesh and 12 per cent output would be given free to Uttarakhand. The project is expected to commission its first unit by the second quarter of this year, a GVK Web site said.

Related Topics