HC sets aside power project contract awarded to BHEL


Contract was given to set up two thermal units in Ennore.

The Madras High Court on Monday quashed proceedings issued by Tamil Nadu Generation and Distribution Corporation (Tangedco) on September 27, 2014 for awarding contract to Bharat Heavy Electricals Limited to set up two units of 660 MW Supercritical Thermal Power Project at Ennore Special Economic Zone.

Allows plea

Allowing a writ appeal filed by CSEPDI-TRISHE Consortium, an Indo-Chinese private venture, a Division Bench of Justices R. Sudhakar and K.B.K. Vasuki reversed an order passed by a single judge on April 7 upholding the grant of the contract to BHEL. The judgment, reserved in Chennai, was delivered here as Mr. Justice Sudhakar is at present heading the High Court Bench here.

The Division Bench directed Tangedco to reconsider the bids submitted by BHEL as well as the appellant consortium since there was a huge difference between rates quoted by them.

But, the single judge had rejected this ground raised by the consortium, stating: “If the case on hand is examined by experts in the field of finance and banking, they may probably agree with the petitioner.”

As for the consortium’s allegation that BHEL had the dubious distinction of delaying power projects was concerned, the judge said: “If the statistics furnished by BHEL are more or less correct, it has put up at least 50 per cent of power projects that have come up in the country.

Staggering volume

He further said, “While dealing with a staggering volume of projects, it is not always possible to stick to a time schedule. If this is true of the judiciary, it should be true of any other industry also, except perhaps, the Olympics.”

He added that Tangedco had perhaps chosen BHEL over the petitioner consortium for the project since it saw the central public sector undertaking as a giant and the petitioner as a novice.

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Printable version | Jan 26, 2020 10:30:08 AM |

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