Case Study Questions– Dulhasti Power Plant

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Case Study – Dulhasti Power Plant

The Dulhasti hydro-energy power plant is a run-of-the-river plant on the Chandra River which is a tributary of the Chenab River located in northern Indian provinces of Jammu and Kashmir. Dulhasti is the first hydropower utility of India and the best example of a project management tragedy. In 1989, the Dulhasti project contract was first assigned to a French consortium promising to complete in 57 months and with a budget of $ 50 million. Despite their request for revising the price, the Indian government refused their request and gathered organizations for a second bidding process. The French consortium’s offer was accepted with a lower cost among the European competitors. It is published in India’s news portal that “The Cegelec-Alstom-led French consortium, DSB, which was initially awarded the construction contract in 1989, pulled out and stopped work in August 1992”. [1] In 1996, the project was then undertaken by another Norwegian company, Jaiprakash-Statkraft Anlegg JV which had problems with hiring workers from other states. [2] It is stated in Indian news that even though; the cost was initially estimated at $50 million, by the end of the century, Rs 5,228 crore ($1 billion) had been spent on the project. [3]
There were a couple of reasons for why this project failed over time. The plant was intended to be built on an inappropriate location considering the geographical, political and economic challenges. The lack of infrastructure followed by political issues was a particular challenge in the Dulhasti Power Plant case study. First, it is stated in Infraline Energy reports that “The rock and ground water conditions encountered were much more severe than what was envisaged and the progress was often stopped or hampered due to presence of cavities/shear zones”. [4] Second, the region was lack of the necessary…...

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