BHEL To Develop Korba

Raipur: The Chhattisgarh government has called off the contract awarded to China National Machinery and Equipment Import and Export Company (CMEC) to establish 600MW thermal power plant in Korba district. Bharat Heavy Electricals Ltd (BHEL) lost the bid to the Chinese company, which won the contract by quoting the lowest rate of Rs 3.61 crore. The decision to cancel the Letter of Intent (LoI) given to the CMEC was taken after a high level meeting, Chairman of Chhattisgarh State Electricity Board (CSEB) Rajib Ranjan said. CMEC could be blacklisted for the delay and refusal to take up the project. CSEB denied to consider CMEC''s proposal and invoked the bank guarantee of Rs 35 crore deposited as bid money. Instead of calling a fresh tender, the government decided to award the second lowest bidder of the project, BHEL. BHEL has earlier bagged the procurement and construction (EPC) contract for establishing two units of 250MW each at Korba (East) thermal power project (TPP).