In the face of alleged multi- crore rupee kickback, which is being probed by CBI, the government is considering cancelling power PSU NTPC's Rs 2,000-crore contract with a Russian equipment firm.
When asked whether the contract for importing equipment to Russian firm Technopromexports (TPE) would be cancelled, Power Minister Shushilkumar Shinde told PTI, "I can not comment as the matter is with the Cabinet."
NTPC had given the contract to TPE in 2005, when the PSU was headed by C P Jain, for supplying equipment to a power project in Bihar.
Sources in the know, however, said that the Ministry of Power has sent a proposal to the Cabinet for cancelling the contract.
The CBI had registered a case in 2006 against unknown officials of NTPC, TPE and unknown others, a CBI spokesperson said when asked if the issue is being probed.
The three-year-old CBI investigations into the alleged irregularities in awarding of the contract is yet to be completed as the agency is still awaiting information from the UK and Latvia.
"The CBI has issued Letters Rogatory (LRs) through the competent courts for investigation and information to the UK and Latvia.
"Since the complete information has not been received from abroad, the investigation is yet to be completed," CBI spokesperson Harsh Bhal told PTI.
Refraining to give further information as the case is in progress, Bhal said the investigations of the case pertaining to within India have been partly completed and a report was sent to the Ministry of Power in June this year.
As per media reports, some officials of the public sector power generator accepted bribe for awarding the contract to the Russian firm.
The Board of NTPC is believed to have given its go ahead to the cancellation of the contract with TPE, sources said.
NTPC's Rs 8,000-crore Barh stage-I project in Bihar is running behind schedule due to contractual dispute with TPE as the Russian company was asking a higher price for equipment due to increase in raw material costs.
TPE had been given contract for supplying boilers and power machines for turbines and generator sets for three 660- MW units of Barh-I project at a contracted price of Rs 2,000 crore. NTPC has also served a legal notice to the Russian company regarding the same.
