An electricity pylon stands lit up by the setting sun on the outskirts of Mumbai. (Photographer: Abhijit Bhatlekar/Bloomberg News)

BHEL Says Executing NMDC Contract For Nagarnar Steel Plant In Chhattisgarh

Bharat Heavy Electricals Ltd. is executing the Rs 1,395-crore contract from NMDC Ltd. to construct a raw material handling system at the miner's under-construction Nagarnar steel plant in Chhattisgarh, the state-owned engineering firm said Monday.

NMDC had last week issued a termination notice to BHEL for delaying the contract awarded in 2011. The completion date of the work was Feb. 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 at NMDC's under-construction Nagarnar steel plant is being executed by ISG Bengaluru, a division of BHEL which "has already completed a major portion of contractual scope of work and is in constant dialogue with NMDC to resolve the above issue", the engineering firm said.

A source had last week said that despite repeated follow-ups at NMDC and at the ministry-level, BHEL is not accelerating work at the Nagarnar steel plant in Chhattisgarh.

"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.

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