NMDC issues termination notice to BHEL for delaying Rs 1395-cr RMHS order

NMDC has sent a termination notice to state-owned firm BHEL for not completing in time a contract to set up a raw material handling system (RMHS) at the miner's under-construction integrated steel plant at Nagarnar, an official said.

On June 26, NMDC issued a notice to engineering firm BHEL invoking termination clause, seeking reply from the engineering firm, as the latter has not been able to complete a Rs 1,395-crore contract awarded to it in 2011, whose completion date was February 28, 2014.

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

A notice of termination dated July 13, 2019, has been sent to BHEL, an NMDC official confirmed.

Meanwhile, in a statement, BHEL said it "yesterday (Monday), received a notice of termination from NMDC. Invocation of contractual clauses such as termination and provision for its redressal are part of contract management. BHEL proposes to take up matter through the redressal mechanism available for disputes resolution between CPSEs".