Rajasthan scraps Rs 12k cr power project tenders won by BHEL

Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUN), a state government company, has scrapped EPC (Engineering, Procurement and Construction) tenders for upcoming new super critical units of Suratgarh and Chhabra thermal power stations, sources said.

RVUN cancelled the separate tenders floated for two 660 MW units -- each for Suratgarh and Chhabra, respectively, without specifying any particular reasons, sources added.

When contacted, BHEL officials said that no reasons have been assigned by RVUN for cancelling the tenders and the company was trying to get in touch with RUVN for ascertaining the same.

Bharat Heavy Electricals Ltd (BHEL) had emerged as the lowest bidder for the Rs 12,000 crore worth tenders, sources said. The second lowest bidder was BGR Energy.

Calls and messages to RUVN Chairman and Managing P N Singhal did not elicit any response. BGR Energy could not be reached for comments.

The cancellation letters were sent on April 25, 2012.

The development comes at a time when BHEL is grappling with slowdown in its order book. Owing to an overall sluggishness in the power sector, the company's order book more than halved to Rs 22,096 crore last fiscal compared to 2010-11 period.

According to sources, even though the tenders were finalised in January 2011, RUVN initiated price negotiations with BHEL only in January this year.

There were also extensive discussions between the two parties on price,

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