Excelsior Correspondent
JAMMU, July 1: National Mineral Development Corporation (NMDC) Limited has issued a notice to M/s BHEL for termination of the contract awarded to it regarding Raw Material Handling System Package (Pkg-01).
Raw Material Handling System Package (Pkg-01) was awarded to BHEL on 1st August, 2011 at a cost of Rs 1395 crores. Original date of completion of the project was 28th February, 2014 but M/s BHEL even after huge delay of more than 5 years in completion of this package and continuous follow up at NMDC and at Ministry level, the company failed to accelerate the progress of the project.
“The progress of work has been abysmal, and even today, after approximately 94 months since commencement of the contract; the Raw Material Handling System is far from completion stage. It is noted that the work of M/s BHEL is lagging inordinately, and the company is negligent and lacking intent to complete the project,” a release issued by the NMDC said.
Keeping in view of all these facts, the release said, the NMDC has taken a bold step by invoking the termination clause of the contract against BHEL by giving a notice to M/s BHEL on 26-06-2019 for termination of the contract. NMDC will now take steps for completion of the project through new options for expeditious completion of the work.
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