BHEL stops work at AP power station after Rs. 240 crore fine.

Bharat Heavy Electricals Ltd. (BHEL) has ordered stoppage of work at the 2x800 MW Damodaram Sanjeevaiah Thermal Power Station in Krishnapatnam, Andhra Pradesh.

The move comes in the wake of the company being reportedly singled out for project delays and levied a fine of Rs. 240 crore for liquidated damages (LD), which Andhra Pradesh Power Development Corporation Ltd. (APPDCL) has deducted.

According to sources, BHEL pointed out that though APPDCL was aware of the shortcomings of the other contractors on site, the LD was deducted unilaterally, without assessing reasons for the delay.

APPDCL's move is against the terms and conditions and the spirit of the contract.


HBL