Tamil Nadu Electricity Board blames BHEL for delayed projects

State utilities across the nation blame equipment supplier Bharat Heavy Electricals Limited (BHEL) for delays in the commissioning of power plants. In TN, Tamil Nadu Electricity Board (TNEB) officials say that nine thermal plants that were contracted to BHEL have been delayed by 2.5 to 4.5 years. While other states have pressed for and obtained compensation from BHEL, Tamil Nadu hasn't yet taken that route. But TNEB officials say that they would ask for damages for the delayed North Chennai plants once they are fully functioning. An independent expert says BHEL may owe Tangedco Rs 1,400 crore as contractual fines. BHEL, however, says the firm is not responsible for the delays. "Though there has been some delay on our part, in a majority of the cases, the delay is on the part of the state utility as the infrastructure to erect the boiler or other equipment was often not ready ," said a senior BHEL official. The Neyveli plant of 500 MW takes the cake - if there's one to be had - for delays. Work on the plant started in 2005 and is yet to be completed - largely due to boiler problems. In late 2007, BHEL formed a joint venture with TNEB to construct the Udangudi power plant. Since no work was done, chief minister J Jayalithaa announced that Tangedco would construct the 1,320MW plant as a state-sector project. more at: http://timesofindia.indiatimes.com/city/chennai/Tamil-Nadu-Electricity-Board-blames-BHEL-for-delayed-projects/articleshow/37523987.cms