Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

What NTPC Says

Photo Credit :

M/s. Thiess Minecs India Pvt. Ltd. (TM) was appointed as Mine Developer-cum-Operator (MDO) on global tendering  for development and operation of Pakri-Barwadih Captive Coal Block of NTPC on 30 November 2010 for a period of 27 years at an estimated contract value of Rs 23,000 crore. The contract consisted of a development period of 360 days (ended on 25 November, 2011) and balance operation stage.
 
TM failed to make any headway despite the fact that development period of the contract was extended twice ie. initially for 450 days and 360 days later. In toto, an opportunity of 1170 days was given for the development phase. The above failure of TM was brought to the notice of Bruce Munro, MD, Thiess Pty. Ltd., Australia through emails on many occasions and got no response. NTPC, in this regard, issued a show-cause notice to TM on 10 July 2012, stating the defaults and non-fulfillment of contractual obligations by TM without any response.
 
The top management of NTPC called on the Australian Minister for Mining during his visit to India and was appraised about total inaction by M/s Thiess.
 
TM was apprised of the persistent reviews of Ministry of Coal, Ministry of Power, Government of India from time to time but did nothing about it. Meanwhile, for this coal block, the coal ministry imposed a Bank Guarantee of Rs 138.6 crore  at poor progress of scarce National Asset which is being contested by NTPC.
 
Other contractors have made good progress for construction of coal handling plant in the same area. Similarly, in North Karanpura area, close to the project site, work is in progress with the cooperation of villagers. Indian Railways has almost completed the rail link.
 
Thus, NTPC had no option but to terminate the contract on 7 May 2014 with a notice period of 45 days.
 
NTPC will like to inform that work at the second mine Chatti Bariatu is progressing at a fast pace and the mining of coal is expected to commence this year.