Power producer NTPC has put in place a strong monitoring mechanism to check erring contractors and suspended entities will be screened again before allowing them to participate in future projects.
NTPC, which has an installed capacity of 39,674 MW, plans to increase its generation to 1,28,000 MW by ‘32.
Sources said that NTPC has come down heavily on its erring contractors. The actions were initiated for various non-compliance issues related to project management, execution as well as engineering and quality assurance capabilities.
As part of strengthening its monitoring mechanism, the state-run major would now onwards carry out strict screening of suspended contractors once their suspension period is over, before allowing them to participate in NTPC projects.
“Contractors, who have been barred, will not be automatically eligible after suspension period, for future projects. They will be subject to strict screening before allowing their participation,” sources said.
So far, NTPC has barred 13 entities from business dealings with the company on account of fraudulent activities. The debarment varies from three years to indefinite period.
Going by NTPC’s list of parties with whom business dealings have been suspended, eight entities have been barred for indefinite period.
In case, a contractor is found to be non-performing, an independent panel would assess their performance based on four major parameters. They are financial status, project execution and management capability, engineering and quality assurance capability as well as claims and disputes.
Depending on their level of non-performance, contractors would be barred from future tenders for a specific or indefinite time periods.
Further, bidders are required to enter into an Integrity Pact with NTPC that restrains them from getting involved in any corrupt influence on any aspect of the contract.
The Integrity Pact is applicable for tenders having estimated value - excluding taxes and duties - of Rs 10 crore and above.
NTPC has 16 coal-fired projects and seven gas/liquid fuel-based plants, besides seven joint venture/subsidiary power stations.