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It is one of the major projects undertaken by Bihar State utility to reduce dependence on the central sector. But now lenders have stopped disbursing loan finance to the upcoming 2X 250 MW Barauni Thermal Power expansion project.
While Bihar State Electricity Board (BSEB) denies any financial crisis with regard to the Rs 3,000-crore project, contractors associated with the project point to non-payment of dues since December.
BSEB awarded a turnkey contract to BHEL to commission the plant. The public sector gear maker, in turn, awarded a number of sub-contracts in favour of listed entities such as McNally Bharat and Simplex Infra. A BHEL official confirmed that the project execution was facing “some problems” as BSEB was yet to furnish state guarantee to the principal lender Power Finance Corporation (PFC). PFC has released Rs 500 crore to the project earlier this fiscal and, refused further disbursements due to non-availability of state guarantee.
Huge dues
The controversy has hit BHEL and its project contractors the most. Sources said the gear maker has so far been paid nearly Rs 490 crore and is awaiting payment of Rs 460 crore more against expenses (or supplies) towards project implementation till March. The company has not received any payment for the last three months. A BSEB official, however, denied any problem in project financing.
According to him, apart from PFC, the project has loan agreements with Central Bank of India and HUDCO.
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