Chouhan warns BHEL on delay

Irked at "inordinate delay" in executing two power projects, Madhya Pradesh Chief Minister Shivraj Singh Chouhan has said the state government will reconsider its plans while awarding power project contracts to Bharat Heavy Electricals Ltd (BHEL).

Speaking to Business Standard, Chouhan blamed BHEL for the bad power situation in the state and said the delay in two of its power projects was a serious issue.

"BHEL has delayed the 500-Mw Birsinghpur power project and the 210-Mw Amarkantak extension project. I will launch a movement against BHEL in public if it fails to complete them soon. I have written to the company several times and reminded the authorities there of the seriousness of the matter," he said.

A BHEL spokesperson said the Birsinghpur plant had started generating power from the first week of this month. However, Chouhan wants the project to run on full capacity. "I made efforts against all odds to get it started on June 19 this year but BHEL is supplying only 100 Mw or even less. I want 500 Mw," Chouhan said.

Chouhan has written a letter (a copy of which is with Business Standard) to Union Heavy Industry Minister Santosh Mohan Deb two days ago on this.

The letter says: "Against the agreed completion date of September 20, 2006, the 500 Mw unit at the Birsinghpur thermal plant has still not been brought into commercial production. Similarly, the construction of the 120 Mw extension unit at Amarkantak thermal plant is proceeding very slowly. This should have been constructed, commissioned and brought into commercial production by February 2007."

Chouhan has urged Deb to instruct BHEL to complete the Birsinghpur project and the Amarkantak project by the first week of November and by the first week of January, respectively.

The letter also says the delay in commissioning these projects has put power supply in a precarious position.

"It is estimated that because of the delay in the commercial operations of these units, the state has suffered losses because it had to purchase additional and more expensive power worth Rs 675 crore during 2006-07," the chief minister has said in the letter.

However, a BHEL spokesperson told Business Standard on the telephone that "commercial power production had started at the Birsinghpur power project from the first week of this month".