Coal block allocation scandal not to have any impact on BHEL operations, says company

Updated - November 16, 2021 11:09 pm IST

Published - September 17, 2012 07:51 pm IST - NEW DELHI

State-run Bharat Heavy Electricals, on Monday, asserted that the ongoing coal block allocation controversy would in no way impact its operations in the coming days. In a rare official statement, BHEL said that despite stagnation in the power sector and intense competitive pressure in domestic and overseas markets, it has a strong order book for execution in 2012-13 and beyond of over Rs.1,30,000 crore.

“Projects currently being executed by BHEL have the required coal linkages and are progressing satisfactorily. There is no potential risk involved due to issues related to coal. The payments for the work being carried out on these projects are also coming in regularly,” the statement said.

According to BHEL, the 4x270 MW Chandwa project, being executed by the company, has the necessary coal linkage from Coal India Limited (CIL) and is in an advanced stage of execution. Similarly, the 4x600 MW project at Tanmar of the Jindal Power Ltd (JSPL) is also in advanced stages and has the coal linkage through CIL. The projects of JSPL, for which doubts on the coal blocks at Jitpur and Amarakonda have been raised, pertain to a new project proposed by JSPL at Godha, orders for which have not been finalised as yet.

The statement said customers such as DB Power, Jindal Photo Ltd, Adhunik Power and GVK Power, which have been allocated coal mines for their upcoming power plants, also have alternative coal linkage/tapering linkage available from CIL or its subsidiaries.

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