Work on the Rs.8,700 crore 3x660 MW Barh power project (Stage I) in Patna district of Bihar has been stalled, following contractual disputes between NTPC and Russian equipment supplier Technopromexport.

Technopromexport, which was to supply the steam generator package for the project, had earlier declined to set up the equipment seeking the removal of a price escalation ceiling in the contract. The Russian firm also wanted a revision in the work completion schedule under the contract.

Due to delays, NTPC issued notices to the Russian firm to start boiler erection work, following which the Russian firm opted to start adjudication proceedings, as provided for in the contract between the two.

While all the three 660 MW Stage I units were envisaged to be commissioned by November 2010, it is now expected that all the units will be commissioned by March 2012. According to earlier estimates, the first unit was supposed to have been commissioned by March 2009, but now the current anticipated date is January 2011.

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NTPC threatens to sue Russian firm for Barh power project delay (21-Sep-08)