Indiabulls cancels China’s Shandong power contract and orders on BHEL

In a setback to Chinese power generation equipment suppliers,Indiabulls Power Ltd has cancelled a contract awarded to Shandong Electric Power Construction Corp., or Sepco, for its Amravati project.

Indiabulls cancelled the engineering, procurement and construction order for the first phase of the project, estimated at around Rs3,000 crore, as the Chinese company is unlikely to meet the commissioning schedule of 39 months due to the Indian government’s new stringent visa policy.

Chinese firms have complained earlier of bias preventing them from winning key contracts in India, but this is the first power sector order to a Chinese firm to be cancelled.

While the number of work visas have been increased to 40 per electricity generation project, from 20, at the behest of the power ministry, a shortage of Chinese workers is stalling the construction of some power plants.

Indiabulls has now placed the order with state-owned Bharat Heavy Electricals Ltd, or Bhel.


more at :
http://www.livemint.com/2010/03/18222305/Indiabulls-cancels-China8217.html