Srinagar, July 18: After missing multiple deadlines, the government has threatened to terminate the contract for power infrastructure upgrading provided to Kolkata-based EMC.

The EMC, which was given the contract in May 2014 at the cost of around Rs 800 crore, has been given three months to show progress.

The project was first to be completed by March 2016.

It was to upgrade the power infrastructure including installation of mini transformers and laying of insulated cabling to prevent power thefts.

However, in the last over four year, only 20 percent work has been completed by the company.

“The company has missed several deadlines so far despite the project completion period ended in March 2018. The government of India has now extended the completion period to 2019,” an official of the PDD said.

The official said that company has sought three months times to restart the work. “The company is facing financial constraints. It has sought the loan from a bank. The company has assured that it will restart the work only if it gets loan from the bank,” the official said.

So far the official said that company’s performance has been “unsatisfactory”.

“We have already imposed Rs 42 on the company. There is also Rs 200 crore bank guarantee and will be forfeited if it fails to complete the works,” the official said.

It was allotted project for installation of mini transformers and lying of cables in Srinagar, Tral, Ganderbal, Budgam, and Pulwama.

The works are to be carried out under the Restructured Accelerated Power Development and Reforms Program (RAPDRP) to reduce the transmission and distribution losses.

The union government has directed the JK government to improve revenue recovery and check the pilferage, a major cause of T&D losses.

The J&K has around 50-percent Aggravate Technical and Commercial (AT&C) and Transmission and Distribution (T&D) losses, highest in the country.

A report submitted by the Abraham Committee headed by P Abraham had slammed the Power Development Department of JK that it had not made “any serious effort to reduce the loss levels”.

The report has said that main reasons for high AT&D losses were absence of up gradation of old lines and equipment, poor repair and maintenance of equipment,  non-installation of sufficient capacitors, theft & pilferage and tampering of meters, low accountability of employees etc.

Chief Engineer, Projects PDD, Naseer Ahmad said the government has raised the issue with the company.

“It has been given month period then everything will be clear,” he added.