Bhel bags Rihand, Ramagundam contracts

Anupama Airy

New Delhi, May 15: THE Rihand-Ramagundam saga has finally come to an end with the National Thermal Power Corporation (NTPC) deciding to award Rs 6,000 crore worth projects to Bharat Heavy Electricals Limited (Bhel), the sole bidder for these two projects.

A special meeting of NTPC board will be convened this week to clear the award of these contracts to Bhel. When contacted, senior NTPC officials confirmed the move.

It may be noted that the NTPC board, which met last month had deferred the proposal to clear the capital cost of the 1,000 mw Rihand and 500 mw Ramagundam power projects. The deferment was on account of the company’s move to attempt further cost reductions.

Senior power ministry officials disclosed that following the recent meeting between the top brass of ministry of heavy industry and ministry of power, to resolve the deadlock between NTPC board and Bhel, the latter has agreed to bring down its bid prices by over 5 per cent.