BHEL suspends work at Ennore plant

In what could dent the business of power generation equipment maker Bharat Heavy Electricals (BHEL), the company has been forced to suspend installation of equipment at the 1,320 MW Ennore thermal power station in Tamil Nadu following an order by a division bench of Madras High Court that cancelled the company’s contract, estimated to be worth R9,000 crore, on the ground that the PSU may not have been the lowest bidder. The contract was awarded to BHEL by Tamil Nadu Generation and Distribution Corporation (Tangedco) in September last year. The high court, in its judgment delivered earlier this week, instructed Tangedco to re-evaluate the bids and pass detailed orders with reasons. “All units/division are requested to put all supplies/erection/civil activities on hold for 2X660 MW Ennore SEZ TPS with immediate effect in the interest of BHEL till further intimation,” an internal communication of the company issued by the the general manager of power sector marketing A.K Garg said. The notice added that the action plan will be finalised on receipt of the judgment, in consultation with the legal team and Tangedco. more at : http://www.financialexpress.com/article/companies/bhel-suspends-work-at-ennore-plant/134495/