The cost calculation of the Nandipur power project on two different rates of dollar escalated the price on paper, causing a great of confusion in the recent past. Sources said the PC-I of the project was revised on a new rate of dollar in 2014, which escalated the cost on papers from Rs 23 billion to Rs 57 billion. They said dollar was available at Rs 60 in January 2008 when the original PC-I was finalised. However, the cost escalated to Rs 57 billion in 2014 when it was recalculated at the rate of Rs 98 a dollar.
"A cost variation of the plant is because of the calculation of actual cost at two different dollar rates. They said the conversion of the plant on gas added another $116 million to the cost. The contractor, Chinese company Dongfeng, had also charged for remobilization, which reached $80 million in 2013 from initial cost of $15 million. Civil works worth Rs 3 billion were also added to the project at a later stage. The project cost did not reach Rs 80 billion and the government has spent less than Rs 50 billion. The government was trying to operate the plant on natural gas since it was unable to run it on furnace oil, but there was insufficient gas.