Power India found that Rajasthan Government has scrapped the tenders it issued for two thermal power projects worth RS. 12,000 Crs which were bagged by Bharat Heavy Electricals Limited (BHEL).
Rajasthan Vidyut Utpadan Nigam Ltd (RVUNL) the state government company has a year ago issued tenders for super critical projects at Suratgarth and Chhabra Thermal Power stations having total capacity of 2,640 MW. The tenders were for design, engineering, manufacture, assembly, testing at works, supply, civil structural and architectural works, erection, testing and commissioning of main plant and balance of plant on EPC basis.
During the bidding process BHEL has emerged as the lower bidder followed by BGR Energy as second lowest bidder in the month of January 2011. Power India found that RUVNL has again initiated price renegotiations with BHEL in January 2012. After that extensive discussions were happened between RUVNL and BHEL.
However, on April 25, 2012 cancellation letters were sent without assigning any reasons.
The development was took place at a time when BHEL is grappling with slowdown in its order book.
Owing to an overall sluggishness in the power sector, the company's order book more than halved to Rs 22,096 crore last fiscal compared to 2010-11 period.
The scrapping of the tenders would delay the setting up of two projects in Rajasthan, which is grappling with power shortage. At present, RUVN has an installed capacity of 4,097.35 MW.
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