NTPC Ltd, India’s largest power generator, has warned the Russian power equipment supplier, Technopromexport (TPE) of legal action if the later does not resume the work at NTPC’s power project in Bihar.
The dispute relates to NTPC’s Barh stage I project, where the Russian company is supplying boilers for three units of 660 of Mw each. Due to dispute between NTPC and TPE, work in this Rs 8,700 crore project has come to a standstill and is now running two years behind schedule.
“For the past few months, NTPC has been in dialogue with TPE to sort out the disputes over price and time escalations and get work resumed at the site”, according to a press statement issued by the ministry of power today. Further details were not disclosed.
With the disputes remaining unresolved, NTPC has given time till coming Wednesday, after which the state-owned power utility plans to start adjudication proceedings as provided for in the contract.
NTPC has already spent about Rs 3,000 crore in the project the total cost of which is Rs 8,700 crore.
The warning by the Navratna PSU to TPE was announced by Jairam Ramesh, minister of state for power while launching the stage-II of the Barh power project in Bihar.
The total capacity of the stage-II, which is another Rs 7,340 crore project, is 1,200 Mw and employs two units of 660 Mw each to be supplied by Bhel, the India’s largest power equipment manufacturer. The first 660 Mw unit is expected to be commissioned in March 2012 and the second unit in January 2013.
