NMDC restores the order of Rs 1,395-cr to BHEL to establish the raw material delivery system at the steel plant
New Delhi, September 2 () The state engineering firm BHEL said on Monday that the public sector miner NMDC has restored its order worth 1,395 million rupees granted to the former, to establish a raw material handling system in its steel plant in Nagarnar, Chhattisgarh.
In July, NMDC had sent a notice to terminate the contract awarded to BHEL to configure the system. NMDC had delivered the contract to BHEL in 2011. BHEL was due to complete the work until February 28, 2014.
Following discussions, NMDC revoked the termination of the contract and re-established the original contract on August 27, 2019, according to a BSE document submitted by BHEL.
The BHEL-ISG Bengaluru division is executing a contract to establish the system at the NMDC integrated steel plant under construction in Nagarnar, in the Bastar district of Chhattisgarh, according to the statement.
BHEL said that on July 15 it received a termination notice issued on July 13 by NMDC for the contract.
The package of the raw material management system was awarded to BHEL on August 1, 2011, at a cost of Rs 1,395 million rupees, with an end date of February 28, 2014.
BHEL had to configure the turnkey system.
The contract was signed in the presence of the then President BHEL and Managing Director B P Rao and then NMDC CMD Rana Som.
The project includes the engineering, acquisition and construction of complete RMHS, from the reception of various raw materials (such as coal and iron ore) from the emptying of the wagons to the crushing. The contract also included the installation of a conveyor of almost 30 km. KKS HRS