State-owned BHEL has offered to take up the controversial Barh project of NTPC if the Russian firm that had bagged the order for it and the power major end their arbitration case and part ways.
"We are ready to take it up if it comes to us. They (NTPC) are rethinking on it ... First, the arbitration between NTPC and Russian firm Technopromexport (TPE) has to end," BHEL CMD K Ravi Kumar told PTI.
TPE had got the order for supplying boilers for the first stage of the Barh project (2x660 MW) from NTPC about three years ago but the companies went into litigation as the equipment supplier demanded higher prices in view of increase in input prices.
As NTPC refused to deviate from the terms of contract, the two firms went into litigation.
When contacted, NTPC CMD R S Sharma said, "The issue is critical ... We will take it up in the Board meeting before taking a decision."
NTPC's legal issue with TPE is on the price and time escalation of the project. TPE is supplying three boilers that can generate 660 MW each.
Another Russian company Power Machines is supplying turbines and generators for the project.
NTPC has spent about Rs 3,000 crore on the project, whose total cost is estimated at Rs 8,700 crore.
The total capacity of the second stage of the Rs 7,340 crore project is 1,320 MW, employing two units of 660 MW each, to be supplied by BHEL.
The first unit of Stage II is likely to be commissioned in March 2012 and the second unit in January 2013.
The transmission system of the project would be implemented by PowerGrid.
