NMDC invokes Termination Clause against 'negligent' BHEL

Notice has been served to the BHEL on the termination of the contract for their 'failure to be accountable and inordinately lagging to timely accomplish the allotted project'. 

Published: 27th June 2019 08:53 PM  |   Last Updated: 27th June 2019 08:53 PM   |  A+A-

BHEL

BHEL (Photo | PTI)

Express News Service

RAIPUR: In a strong action taken against the Bharat Heavy Electricals Limited (BHEL), the state-run mining giant National Mineral Development Corporation (NMDC) has invoked the ‘Termination Clause’ in Raw Material Handling System (RMHS) Package at the greenfield integrated steel plant at Nagarnar in Bastar, south Chhattisgarh.   

According to the NMDC officials, the notice has been served to the BHEL on the termination of the contract for their “failure to be accountable and inordinately lagging to timely accomplish the allotted project”. 

The RMHS Package on engineering and construction works was awarded to BHEL on 1 August, 2011 at a cost of Rs 1395 crore.

“The stipulated date of completion of the project was 28 February 2014 but there is a huge delay of over 5 years to complete this package. Despite the matter being persistently pursued bye us at the NMDC and taken up during the various rounds of meetings at the ministry level, the BHEL has not accelerated the progress of the project. Even after 94 months since the commencement of the contract the RMHS is far from completion state”, the NMDC officials told the New Indian Express. 

The NMDC Chairman-Cum-Managing Director (CMD) N Baijendra Kumar has confirmed Express about bringing forth the Termination Clause’ after finding the progress of the BHEL work to be abysmal.

The miner company asserted that the work of M/s BHEL lacks the intent to complete the given undertaking.  “We will initiate steps for completion of the project through a new route soon”, the NMDC officials stated. 

The NMDC, which conceived steel plant in 2009-10, is setting up a three million tonne per annum (MTPA) integrated steel plant at Nagarnar.  

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