There has been a 38-month delay in execution of Neyveli Lignite Corporation’s 500 MW unit (2x250 MW) due to ‘failure’ of equipment supplier BHEL, NLC Chairman and Managing Director Mr A R Ansari said here on Saturday.

“The delays in the execution of NLC’s power project in Neyveli is due to the failure of BHEL. The 2x250 MW units adopting new Circulating Fluidized Bed Combustion executed by BHEL has been delayed by 38 months,” he said.

Meanwhile, NLC General Manager Mr Ganesan said delay in erection work had resulted in the Rs 2,454 crore project falling behind schedule by about three years and resulting in Rs 2 crore loss per day.

The plant was to have commenced commercial operations in February, 2009.

“Delay in erection works has resulted in the plant falling behind schedule by about three years. Because of delay NLC has a direct revenue loss of Rs two crore per day,” Mr Ganesan told PTI.

He said the foundation stone for this thermal power unit (2x250 MW) was laid by Prime Minister Dr Manmohan Singh on February 4, 2006 at Neyveli.

Mr Ganesan said the planning and project directorate of NLC has scheduled to generate power from the this project in Feb 2009. Unit 1 was synchronised on June 27 2011 while hydro test for unit II has been completed and other works are on, he said.

NLC’s total power generation from three thermal power stations is 2,490 MW. Tamil Nadu now gets 1,170 MW and the remaining capacity is shared among Karnataka, Kerala, Andhra Pradesh and Puducherry.

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