Impose higher penalties if BHEL doesn’t meet parameters: Power minister tells NPTC, others

The Union power ministry has asked power sector CPSUs like NTPC to consider revising contract documents with enhanced penalties if state-run equipment supplier Bharat Heavy Electricals (BHEL) fails to meet quality parameters or delays project execution.

The development comes at a time when 13,410 megawatt (MW) of under-construction thermal power plants to be owned by CPSUs, where BHEL has been awarded construction or equipment supply contracts, are facing delays and the project costs now cumulatively stand at Rs 1,08,850 crore — 17% higher than the amount initially estimated. Most of these plants are being set up by NTPC.