Public sector explorer ONGC blames equipment maker Bharat Heavy Electricals Ltd (BHEL) for a year delay for commissioning 726.6-megawatt gas-based power project at Palatana in Tripura.
ONGC offered the contract for two units of 363.3 MW combined cycle power plant to be set up in Tripura in June 23, 2008. The project was expected to be operational last year but has not started commercial operations till now.
“There is no doubt that BHEL equipment is good. But, the company is far from efficient in project commissioning. ONGC had to manage for transportation of equipment after diplomatic talks with Bangladesh. This was not our job. BHEL just gave the transportation tender to ABC Ltd and then did not facilitate anything,” said a senior ONGC official.
Logistics problem
BHEL, on the other hand, admits that there were some logistics problems leading to gap of 18 months for receiving the last consignment but some other issues delaying the project cannot be attributed to BHEL.
BHEL said that issues such as non availability of skilled manpower at site and change in design criteria on technical datasheets are out of its control.
“Project being in the North-East State, skilled manpower for civil and erection work at site was not up to the mark. Also due to remote site location, the available manpower could not be retained by the subcontractors at site. Also, change in design criteria on technical datasheets resulted in delay of three months in commencement of manufacturing,” said a BHEL official.
Normal transportation through Assam, Tripura and Meghalaya took nearly six months from dispatch date to reach site due to tough terrain, road and bridges restrictions and movement restrictions by local authorities. This resulted in start of erection activity of GT accessory module only in January 2012 against schedule of August 2011, BHEL clarified.
Tax issues
Not only for Palatana project, ONGC said that BHEL has also delayed the 195 MW project for its subsidiary ONGC Petro additions Limited (OPaL).
But, BHEL said that the delay in ordering of bought out items was due to non- settlement of taxation related issues. “It is anticipated that we will be able to meet contractual commitment, said the BHEL official.