NTPC offers to hike equipment prices for Barh project
Press Trust of India / New Delhi August 19, 2009, 19:32 IST

State-run NTPC is not averse to increase the cost of equipment for its controversial 1,980 Mw Barh project as per the terms in the contract with the two Russian companies -- Technopromexports and Power Machines.

"If they agree to escalate the price as per the contract we can go ahead with the project," a company official said on condition of anonymity.

"NTPC is ready to escalate the (raw material) price to the extent, mentioned in the contract but Technoprom is asking for more," he said, adding that "if they (Russian firm) do not agree we will fight it legally but that would delay the project".

The company's Rs 8,000-crore Barh stage-I project is running behind schedule due to contractual dispute with the two Russian equipment suppliers. The two companies were asking higher price for the equipment due to increase in raw material costs.

Technopromexports is engaged for supplying boilers and Power Machines for turbines and generator sets for the three 660 Mw units of Barh-I project at a contracted price of Rs 2,000 crore.

NTPC has served a legal notice to the two companies regarding the same.