NMDC restores Rs 1,395-crore order to BHEL for setting up raw material handing system at steel plant
NMDC had given the contract to BHEL in 2011. BHEL was to complete the work till February 28, 2014
State-owned engineering firm BHEL said public sector miner NMDC has restored its order worth Rs 1,395 crore awarded to the former, to set up a raw material handling system at its steel plant in Nagarnar, Chhattisgarh. In July, NMDC had sent a notice to terminate the contract awarded to BHEL for setting up the system. NMDC had given the contract to BHEL in 2011. BHEL was to complete the work till February 28, 2014.
"Subsequent to the discussions, NMDC has revoked the termination of the contract and restored the original contract on August 27, 2019," according to a BSE filing by BHEL.
A contract to set up the system at NMDC's under-construction integrated steel plant at Nagarnar in the Bastar district of Chhattisgarh is being executed by the BHEL-ISG Bengaluru division.
BHEL was to set up the system on a turn key basis. The project includes engineering, procurement and construction of complete RMHS, from receipt of various raw material (such as coal and iron ore) from wagon tippling to crushing. The contract also included installation of a nearly 30km conveyor.