BHAVINI responsible for delay in commissioning of PFBR: CAG

The Comptroller and Auditor General of India has blamed Bhartiya Nabhikiya Vidyut Nigam Ltd (BHAVINI), a PSU under the aegis of the Department of Atomic Energy (DAE), for cost overruns in building India's ambitious Prototype Fast Breeder Reactor (PFBR).
In a report, the CAG held BHAVINI's inability to develop in-house expertise for undertaking procurement activities independently and deficiencies in the existing procurement system and procedures responsible for delay in completion of project and cost overruns.
BHAVINI was created in October 2003 to build India's first PFBR of 500 MW at Kalpakkam.
The project was to be completed by September 2010 at the cost of Rs 3,492 crore. However, the project is yet to see the day of light while the cost has escalated to Rs 5,677 crore.

Subsequently, in April 2012 the government gave an extension for four years to the project with the date of commercial operations as March 2015.
BHAVINI had attributed the slow progress in the commissioning the project to the delay in obtaining sanctions from the government, change of design due to tsunami, significant increase of price of raw material, labour rates and impact of taxes and duties, the report said.
"Audit, however, observed that in addition to the aforesaid factors, inability of BHAVINI to develop in-house expertise for undertaking procurement activities independently and deficiencies in the existing procurement system and procedures were also responsible for delay in completion of project and cost overruns," the CAG report said.