In response to the news report entitled “BHEL counters NLC charges on project delays” (May 30), Neyveli Lignite Corporation says:
“BHEL in the Business Line dated 30th May 2011 had stated that the variance between the sample and actual fuel was the reason for delay in commissioning of the project. In this regard, NLC points out that it has been clearly spelt out in the contract conditions that the boilers have to be designed for ash content ranging between 8 and 30 per cent. BHEL is obliged to adhere to the range while designing the boilers as the lignite produced from Barsingsar Mines will be only of this range.
It is BHEL's responsibility to ensure continuous operation of the unit at the rated capacity of 125 MW for a period of 72 Hours for handing over the unit to NLC. However, BHEL is experimenting with different options in Barsingsar Units to overcome the design shortcomings and this has resulted in abnormal delay in establishing sustained full load operation of the units. BHEL has no option but to adhere strictly to the contractual obligations.
In the case of 1,000 MW project at Tuticorin, the tender itself mentioned that there is space constraint and that the contractor has to make his own arrangement for any additional space requirement. Still, NLC arranged additional area but BHEL has started utilizing this additional area only belatedly owing to the delay in finalizing sub-contractors and site mobilisation activities.
In regard to 2x250 MW capacity Power Station at Neyveli, the initial delay was due to issues between BHEL and the technology suppliers and not at all connected with NLC. Subsequent delays were to time taken by BHEL in finalizing sub-contractors and site mobilization.”