Executing RMHS contract awarded by NMDC: BHEL

State-owned engineering firm BHEL Monday said it is executing Rs 1,395-crore contract from NMDC to construct a raw material handling system at the miner's under-construction integrated steel plant at Nagarnar, Chhattisgarh.

Last week, the country's largest iron ore miner NMDC had issued a termination notice to BHEL for delaying the contract awarded in 2011.

The completion date of the work was February 28, 2014.

"A pre-termination notice dated June 26, 2019 has been received from NMDC, asking BHEL to take corrective actions required to remedy or take steps to remedy within the next 14 days with a realistic approach for completing the balance work," BHEL said in a regulatory filing.

A contract to construct a raw material handling system (RMHS) at NMDC's under construction plant at Nagarnar is being executed by ISG Bengaluru which is a division of BHEL, it said.

The engineering firm said it "has already completed major portion of contractual scope of work and is in constant dialogue with NMDC to resolve the above issue".

However, a source while informing about the notice sent to NMDC last week had said that even after continuous follow up at NMDC and ministry level, BHEL is not accelerating work the project.

"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 source had said.