New Delhi: Raw Material Handling System Package (Pkg-01) was awarded to BHEL on August 1, 2011 at a cost of Rs.1395 crores. Original date of completion was 28th February 2014. There is a huge delay of more than 5 years in completion of this package. Even after continuous follow up at NMDC and at Ministry level, BHEL is not accelerating the progress of the project.
The progress of work has been abysmal, and even today, after approximately 94 months since commencement of the contract; the Raw Material Handling System is far from completion stage.
It is noted that the work of M/s. BHEL is lagging inordinately, and is lacking intent to complete the project. M/s. BHEL is negligent towards the completion of the project.
Therefore, NMDC has taken a bold step by invoking the Termination clause of the contract against BHEL by giving a notice to M/s. BHEL on June 26, 2019 for termination of the contract.
NMDC will now take steps for completion of the project through new options for expeditious completion of the work.
The completion date of the work was February 28, 2014.
"A pre-termination notice dated June 26, 2019 has been received from NMDC, asking BHEL to take corrective actions required to remedy or take steps to remedy within the next 14 days with a realistic approach for completing the balance work," BHEL said in a regulatory filing.