BGR Energy Systems, a Chennai-based EPC and BoP contracting company for the power and oil & gas sector, on Tuesday said it has reached an agreement with its joint venture partners Hitachi, Japan (HTC) and Hitachi Power Europe GmbH (HPE), Germany, to settle their outstanding disputes that have been impacting the execution of a slew of power projects in the country. BGR has also decided to withdraw all pending legal proceedings initiated by the company in various fora.
The JV companies were formed in 2010 for technical and financial collaboration for the manufacture of super-critical boilers, steam turbines and generators. “The agreement provides for certain payments to be made by HTC to the company in a phased manner over a period of time on achievement of number of milestones/ events/transactions so as to realise the objectives mentioned here in above,” BGR Energy Systems said in regulatory filing with the stock exchanges.
BGR Energy Systems said the company has filed relevant applications for withdrawal of all pending litigations and other legal proceedings filed against HTC, HPE, Mitsubishi Heavy Industries, Mitsubishi Hitachi Power Systems and Mitsubishi Hitachi Power Systems Europe GmbH, in fulfillment of the conditions of the agreement. The agreement provides for execution of NTPC contracts for Solapur (2×660 MW) and Meja (2×660 MW) of super-critical steam generators (boilers) and Lara (2×800 MW) super-critical steam turbine and generators.
Also, it has incorporated provisions for arrangements regarding the future of the JV partnership between HTC, HPE and the firm in respect of existing JV firms BGR Boilers and BGR Turbines Company, after the completion of NTPC projects.