NMDC to terminate Rs 1395 crore BHEL contract for delay in Nagarnar works

RAIPUR:

National Mineral Development Corporation

(NMDC) will terminate its arrangement with public sector

Bharat Heavy Electricals Limited

(BHEL) for providing Rs 1395 crore

raw material handling system

package at NMDC’s

Nagarnar steel plant

in Bastar due to undue delay in completing the project.

"NMDC has invoked termination clause against BHEL in RMHS package of Nagarnar", according to NMDC chairman cum managing director

N Baijendra Kumar

.

Public sector mining giant NMDC, as part of its diversification, value addition and forward integration programme is setting up a 3 MTPA capacity greenfield Integrated Steel Plant based Nagarnar in tribal Bastar region with an estimated outlay of more than Rs 20000 crore. The project is nearing completion and is expected to be commissioned soon.

The raw material handling system package was awarded to BHEL on August one, 2011 at a cost of Rs 1365 crore and the original date of completion was February 28, 2014. But there was a huge delay of more than five years in completion of this package and BHEL did not accelerated the progress of the project despite continuous follow up, an NMDC spokesman said.

"The progress of work has been abysmal, and even today, after approximately 94 months since commencement of the contract; the Raw Material Handling System is far from completion stage. The work of M/s BHEL is lagging inordinately, and is lacking intent to complete the project”, he added.

He said NMDC has invoked termination clause against BHEL by giving notice to BHEL on June 25 for termination of the contract and the company will take steps for completion of the project through new route.

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