NTPC keen to resolve Barh row with Russian firm even as deadline ends

NTPC continues to be in talks with Russia’s Technoprom Export for supply of boilers for its 1,980 MW Barh (three units of 660 MW each) stage I project in Bihar even as the deadline set by the state-owned power generation utility to resolve the dispute expired Wednesday, an NTPC official said today.

“Yes, we had set September 24 as the deadline for resolving the dispute after which we were supposed to initiate adjudication proceedings against the Russian company. But filing a suit is not an easy matter since so much effort has already gone into it. We are still trying to resolve the matter with Technoprom,” the official said.

An NTPC release issued on Saturday had quoted Minister of State for Power Jairam Ramesh as saying that the company had given time to Technoprom Export till September 24 before it starts adjudication proceedings as provided for in the contract between the two.

The first unit was supposed to have been commissioned by Mar 2009 but the current anticipated date is now January 2011. The other two units are also delayed by over two years.

The total cost of stage-I is Rs 8,700 crore, of which roughly Rs 3,000 crore has already been spent.

Power Machines, another Russian company, is to supply the turbine-generators for the project.

Stage-II of the project, costing Rs 7,340 crore, comprises two units of 600 MW each.

Bharat Heavy Electricals Ltd is supplying both the supercritical units for stage-II. The first unit will be commissioned in March 2012 and the second in January 2013.