The Hindu Business Line : Showpiece NTPC project delayed

New Delhi, Nov. 2 The slugfest between power major NTPC Ltd and Russian equipment supplier Technopromexport is set to push back the commissioning of the 1,980 MW Barh-I, touted as the country’s first supercritical technology project, by at least 16 months.

Work on the controversial Rs 8,700-crore project in Bihar has stalled following contractual disputes between the State-owned power major and its key Russian equipment supplier. Adjudication proceedings have now been initiated by the Russian firm, which could delay the project further, a Government official said.

Technopromexport, which was to supply the steam generator package for the project, had earlier declined to set up the equipment seeking the removal of a price escalation ceiling in the contract. The Russian firm also wanted a revision in the work completion schedule under the contract.

In the light of the delays, NTPC issued notices to the Russian firm to start boiler erection work, following which the Russian firm opted to start adjudication proceedings, as provided for in the contract between the two.

According to sources, the adjudicator has been appointed on October 10.

“While all the three 660 MW Stage-I units were envisaged to be commissioned by November 2010, we are now taking efforts for commissioning all the units progressively by March 2012,” an official said.

According to earlier estimates, the first unit was supposed to have been commissioned by March 2009, but the current anticipated date is January 2011.

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