NTPC to resume work on stalled Bihar project Barh

The Government has taken a decision that NTPC Ltd can carry on with its contract with Russian firm Technopromexport (TPE) for supplies of the steam generator package for the power major's 1,980-MW Barh thermal power project (Stage-I) in Bihar.Progress on the project had been held up due to contractual disputes between NTPC and TPE over a pact entered into by both the firms over five years ago.

The decision to allow NTPC to go ahead with the project was taken at a meeting of the Cabinet Committee on Infrastructure on Wednesday.“Following the approval, further action will be taken by NTPC and TPE for the implementation of the project with a revised completion schedule,” the Urban Development Minister, Mr Jaipal Reddy, told newspersons after the meeting.

The decision of the Cabinet paves the way for immediate execution of the stalled project, an official statement said. An escalation in the cost of the project will be worked out between the two firms, it added.The Russian firm had won a contract to supply steam generators to the Barh project in February 2005. But work on the project stalled soon, with TPE demanding more money for the equipment, citing an increase in steel prices.TPE sought the removal of a 20 per cent cap on price escalation as a precondition to resuming deliveries.