NTPC's Barh-I back on track; to start commercial operation by December 2011

Following the recent settlement of the long-standing spat with the Russian equipment supplier, Technopromexport (TPE), the implementation of NTPC`s 1,980 MW Barh power project in Bihar seems to have picked-up tempo. The construction activities for the project are presently at full swing. Over 90% of land areas required for the project has already been acquired by the power major. That apart, NTPC has initiated all-possible efforts to achieve synchronization of the project by September 2011, followed by commercial operation in December 2011.

Earlier, in May 2010, the Union Government paved the way for the immediate resumption of work at the project, by allowing NTPC to compromize on its contract with TPE for supply of the steam generators. The Centre has asked the power firm to mutually work-out the escalation applicable to the cost of the project with the Russian contractor.

Pertinently, the work on the project was stalled for a long time, following the contractual dispute between NTPC and TPE, with the Russian firm demanding more money, just after bagging the contract in March 2005, citing higher steel prices. While the original contract value is around Rs 2,000 crore, TPE insisted on an additional payment of Rs 1,700 crore to account for higher steel prices. That apart, the Russian company had also sought relaxation of the delivery deadline and withdrawal of the 20% cap on price variation, attributing these demands to engineering, legal, and location-related issues.