Haryana Govt Cancels Contracts of Yamunanagar, Hisar Thermal Power Plants Given to Chinese Firms

In light of recent developments between India and China in Ladakh, the Haryana government has cancelled the contracts issued to Chinese companies. This decision has been made about thermal power station contracts given to two different Chinese companies.

The thermal power plants in question are that in Yamunanagar and Hisar. During the bidding process for both these plants, Chinese companies had won the bid and secured the contracts. This bid was invited by the Haryana Power Generation Corporation Limited (HPGCL).

On December 7, 2015, the Ministry of Environment Forest and Climate Change (MoEF&CC) issued new environmental norms for thermal power plants. This notification made the installation of pollution control equipment mandatory in thermal power plants.

Haryana Government then decided to install a flue-gas desulphurization (FGD) system in its thermal power plants in Hisar and Yamunanagar.

At the time, National Thermal Power Corporation (NTPC) was appointed as a consultant to oversee the project and HPGCL invited bids while taking the international competitive bidding route.

A spokesman for HPGCL had confirmed that five bids were received against the tender for Deen Bandhu Chhotu Ram thermal power station in Yamunanagar. Out of these, 3 bids were by Chinese companies and the remaining 2 by Indian firms. The Indian bidders were identified as EPIL (in collaboration with a Chinese firm) and BHEL (in collaboration with a non-Chinese foreign firm).

On the other hand, three bids were received against the tender for RGTPP in Hisar. Two of these bids were made by Chinese firms and the third by BHEL (with foreign collaboration).

The L-1 bidders were Chinese and the prices received were competitive in both these tenders, the HPGCL spokesman claimed.

However, the government of Haryana has decided to cancel these tenders and to float fresh tenders based on NTPC’s domestic bidding pattern. According to this, bids will only be allowed from companies registered in India.

Source: India Today