Yadadri Power Plant Construction Faces Delays: Deputy CM Seeks Comprehensive Report
Hyderabad, January12: Deputy Chief Minister Bhatti Vikramarka recently chaired a review meeting at the Secretariat, urging Energy Secretary Rizvi to provide a comprehensive report on the delayed construction of the Yadadri Thermal Power Plant. The meeting, attended by BHEL officials, delved into the causes behind the project’s prolonged timeline, the allocation of contracts, and outstanding payments.
Causes of Delay and Nomination Method:
Deputy CM Bhatti Vikramarka raised concerns over the sluggish progress of the Yadadri Thermal Power Plant, emphasizing that as per the agreement signed with BHEL in June 2015, two units should have been completed by October 2020, with three more units by October 2021. He questioned the decision to award the contract to BHEL through a nomination method rather than a competitive bidding system.
BHEL’s Explanation:
BHEL officials, in response, cited delays in bill payments and challenges related to environmental clearances as major hurdles. They highlighted that payments were not made promptly, hindering their ability to pay subcontractors, consequently disrupting the smooth execution of the project.
Value of Works and Pending Bills:
Officials disclosed that works totaling Rs 20,444 crore were entrusted to BHEL, out of the total estimated cost of Rs.34,500 crore. Of this, Rs.15,860 crore worth of works had been completed, but bills amounting to Rs.1167 crore were still pending. BHEL officials attributed the payment delays to the previous government, noting that 91 percent of payments were made in a single month in March 2023.
Projected Completion Timeline:
During a presentation, BHEL officials outlined that if environmental clearances were obtained by April 2024, they aimed to complete two units by September 2024, two more units by December 2024, and the remaining unit by May 2025. The completion timeline hinged on the timely acquisition of necessary permissions.
Deputy CM Bhatti Vikramarka directed the Energy Secretary to furnish a comprehensive report encompassing Genco’s estimates, BHEL’s rates, negotiation details, and contract values. The thorough review aimed to address the concerns surrounding the Yadadri Thermal Power Plant construction and pave the way for its timely completion. The meeting saw participation from BHEL CMD Koppu Sada Sivamurthy, Director Tajinder Gupta, and other key officials.
