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Citing inordinate delay, NMDC terminates BHEL’s Nagarnar contract

Our Bureau Hyderabad | Updated on June 27, 2019 Published on June 27, 2019

The ₹1,395-crore project is five years behind schedule

NMDC has decided to invoke termination clause against BHEL in Raw Material Handling System Package (RMHS) of its Nagarnar Steel Plant project following a five year delay in completion.

This relates to the ₹1,395-crore RHMS Package-01 awarded to BHEL on August 1, 2011..

Original plan

The original date of completion envisaged was February 28, 2014.

NMDC in a statement said, “It is noted that the work of BHEL is lagging inordinately and is lacking intent to complete the project. BHEL is negligent towards the completion of the project. Therefore, NMDC has taken a bold step by invoking the termination clause of the contract.”

NMDC has served a termination notice to BHEL on June 26, 2019.

NMDC will now take steps for completion of the project through new options for expeditious completion of the work.

Even after continuous follow up at NMDC and at the Union Ministry level, BHEL is not accelerating the progress of 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, it said.

Published on June 27, 2019
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