JSPL Dlaps Rs 123 crore ‘Liquidated Damages’ Notice On BHEL For Project Delays

Navin Jindal-promoted Jindal Steel and Power (JSPL) has slapped a Rs 123-crore notice on the state-run power equipment maker BHEL, citing delays in execution of projects at two units of JSPL’s 2,400 MW coal-based plant at Tamnar in Chhattisgarh. JSPL invoked the contractual clause titled ‘liquidated damages’.

BHEL is executing the boiler, turbine and generator (BTG) packages for all the four units of the plant. While it commissioned the first and fourth units on schedule, there were delays of four and eight months respectively in case of the second and third units. The total contract value, with each BTG unit costing Rs 150 crore, is Rs 600 crore, which means if the JSPL’s claim is honoured, BHEL would lose 20% of the business

BHEL lacks experience in negotiating the claims made under liquidated damage as it has mostly worked with state-run power developers like NTPC and DVC which don’t normally claim such damages.

Extra info:
  • Bharat Heavy Electricals Limited owned by the Government of India, is a power plant equipment manufacturer and operates as an engineering and manufacturing company based in New Delhi, India.
  • Atul Sobti, (Chairman & MD)
  • Mr. Naveen Jindal Chairman of Jindal steel has many facets to his personality. He has represented Kurukshetra in the 14th and 15th Lok Sabha, is the Chairman of Jindal Steel and Power Limited (JSPL), Chancellor of the O.P. Jindal Global University (JGU), President of the Flag Foundation of India (FFI), a sports enthusiast and a family man.

So lets do:
  • Who is the Chairman of Jindal Steel?
  • Who is the Chairman & MD of BHEL?

Source – Financial Express


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