Hyderabad, Jun 27 : The NMDC has taken a bold step by invoking the termination clause of the contract by giving a notice to BHEL here on Wednesday for termination of Raw Material Handling System Package (Pkg-01) contract awarded to BHEL in August, 2011 at a cost of Rs.1395 crores, the statement here said on Thursday.
NMDC would now take steps for completion of the project through new options for expeditious completion of the work.
The NMDC has taken the bold decision against the BHEL for negligent towards the completion of the project, the statement further said.
The BHEL has to complete the project by Feb 28, 2014 but there is a huge delay of more than five years in completion of this package.
Even after continuous follow up at NMDC and at Ministry level, BHEL is not accelerating the progress of the project.
The progress of work has been abysmal, and even after approximately 94 months since commencement of the contract, the raw material handling system was far from completion stage, the statement added. (UNI)