Neyveli Lignite may claim more compensation from BHEL for delay in power unit

Neyveli Lignite Corporation may consider slapping an additional penalty on Bharat Heavy Electricals Ltd for the delay and concomitant loss it suffered for the latter’s delay in construction of its 500-MW power plant at Neyveli. The lignite (brown coal) miner is bitter on BHEL for the nearly 48-month delay suffered by the power project so far. It is India’s first lignite-based power project using CFBC (circulated fluidised bed combustion) technology, which can open new avenues for utilising India’s vast lignite resources for power production in an environmental friendly manner. BHEL is the engineering, procurement, construction contractor for three of the miner’s power projects — 500 MW at Neyveli, 2x500 MW at Tuticorin and 2x125 MW in Rajasthan. Liquidated damages “We have claimed the 7.5 per cent liquidated damages from BHEL as per the contractual obligations. We may consider claiming additional compensation for the 48-month delay of the project so far. We would have suffered a loss of about Rs 1,000 crore for the delay,” Surender Mohan, Chairman and Managing Director, told Business Line on the sidelines of a function here today. more at: http://www.thehindubusinessline.com/companies/neyveli-lignite-may-claim-more-compensation-from-bhel-for-delay-in-power-unit/article4184274.ece?ref=wl_opinion