Responding to the cancellation notice served by the new BJP government, the Brakel Corporation, a Dutch company, has finally deposited the upfront premium of Rs 173 crore for the two mega hydroelectric projects it had secured in global bidding. The state government had allotted seven projects by inviting global tenders over the past one year. The Brakel Corporation bagged the Jhangi-Thopan (480 MW) and Thopan-Powari (480 MW) projects in Kinnaur district, offering the highest upfront premium of Rs 36 lakh per megawatt in October, 2006. The companies which bagged various projects deposited 50 per cent of the upfront premium as per the stipulated conditions. However, the Brakel Corporation did not deposit the amount and sought more time on the plea that it required some clearances from the RBI. It kept on seeking more time for the purpose repeatedly and the previous Congress government obliged it. The action was being seen as a case of "favouritism' as the government had earlier cancelled the 260-MW Kuther project bagged by D.S. Constructions, a leading infrastructure company, at the upfront money of Rs 52 per megawatt for not depositing the amount. The project was subsequently allotted to JSW Energy, the second highest bidder. D.S. Constructions has moved the high court against the government decision. The government had also allowed the company to merge the Jhangi-Thopan project and Thopan-Powari into a single 960-MW project. The first thing the BJP government did after assuming power was to serve a notice on the Brakel Corporation that the projects will be cancelled if it failed to deposit the upfront premium by January 31. The company has deposited Rs 173 crore within the stipulated period and submitted a 350-page reply, explaining reasons for the delay. It had also sought certain clarifications. Ajay Mittal, principal secretary, power, confirmed that the company had deposited the amount. Further action in the matter would be taken after considering the detailed reply submitted by the company. As per the conditions laid down by the government the successful bidders are required to deposit 50 per cent of the upfront amount on the allotment of the award letter, 25 per cent at the time of signing the implementation agreement and 25 per cent at the time of financial closure.