BGR Energy pulls out of Rs 800 crore contract with NTPC

BGR Energy pulled out as project work has not yet started at plant due to non-availability of various clearances

BGR Energy has pulled out of a contract, estimated to be Rs 800 crore, for supply of power equipment to NTPC's proposed 1,600 MW Darlipali project in Odisha, citing non-progress of the project.

According to sources, BGR Energy, which had bagged the contract for supplying turbines and generators to Darlipali plant in Odisha in 2011, pulled out as project work has not yet started at plant due to non-availability of various clearances and physical possession of land. The contract was valued at Rs 800 crore.

When asked to confirm the development a BGR Energy spokesperson said: "We need to review the cost of the contract if NTPC is going ahead with it."

When asked whether NTPC would invite fresh bids for the turbines and generators, its Chairman and Managing Director Arup Roy Choudhury told PTI, "There will be fresh bids for the turbine."

NTPC was supposed to provide BGR Energy with the Notice of Authorisation to start the work on the contract. BGR Energy is yet to receive the NOA, sources said.

NTPC on the other hand said that the company has not received the requisite land for the project. The project requires approximately 1,600 acres of land.

"We are unable to start work on the project due to delayed clearances," an NTPC official said.

The main plant equipment (boilers, turbines and generators) order was finalised in November 2011. The boilers (800 MW) would be supplied by state-run BHEL and the T&G (turbines and generator) sets by BGR Energy.

BGR Energy is an EPC (Engineering, Procurement and Construction) provider.

The 1,600 MW Darlipali project is part of the bulk tender projects and is linked to the Dulanga coal mine, with 7 million tonnes capacity, in Odisha.