AP-Genco mounts pressure on BGR Energy over NTTPS works

High-level talks today to expedite project execution

A file photo of the NTTPS near Vijayawada.

As the Balance-of-Plant (BoP) works of the new (Stage-V) 800 MW unit at Dr. Narla Tatarao Thermal Power Station (NTTPS) have been going on at a sluggish pace for about six months, the AP-Genco is mounting pressure on BGR Energy (BGRE) to expedite the same in order to complete them by June 2020.

The AP-Genco is reliably learnt to be seriously considering descoping of the works as a means to help the BGRE in cutting delays but is wary of legal implications of such a move as the Chennai-based firm might raise an objection having achieved almost 80% progress in the BoP works.

The proposal to reduce the scope of the BoP works was first made by top officials of the AP-Genco in February 2019 but it fell through due to some reasons and is now back on the agenda. In fact, it is going to be a major point in discussions which AP-Genco MD B. Sreedhar is scheduled to hold with BGRE deputy managing director Arjun Govind on November 1, according to a senior official in the Energy Department.

Deadline lapses

The targeted Commercial Operation Date (CoD) of the new unit is November 2019, which has lapsed due to the above delay and as BGRE is said to be facing liquidity crunch and dealing with issues arising from the Goods and Service Tax and other problems, the AP-Genco has decided to hold parleys at the highest level to get the project going, as after a certain stage, the BoP and Boiler-Turbine-Generator (BTG) works (awarded to Bharat Heavy Electricals Limited) have to go in tandem for the whole project to be ready for operation.

The official told

The Hindu that there were no delays on the part of the AP-Genco, which had recently extended the CoD to June 2020 largely due to certain new regulations of the Ministry of Environment, Forest and Climate Change to be complied with.

The BoP was supposed to be completed in 36 months and the BTG in 42.

The source in Energy Department pointed out the BGRE had a good record of delivering the BoP of 7th unit (500 MW) at NTTPS and the 500-MW units at Kothagudem and Kakatiya Thermal Power Stations as per schedule and it is expected to rise to the occasion in executing the NTTPS works estimated to cost nearly ₹2,500 crore.