Govt slaps notice to BHEL asking to pay Rs 25 crore as penalty

RAICHUR: Karnataka government has slapped a notice on BHEL asking to pay Rs 250 crore as penalty for supplying faulty power generating equipments at the Raichur Thermal Power Station, Minister for Energy, Shobha Karandlaje said today.

The eighth unit of the RTPS, the contract of which was awarded to BHEL, developed technical snag since about a year ago and the company has not been able to rectify it, she told reporters here.

The government had also decided to recover the losses caused to the state following failure to generate power by BHEL in the last one year, she said.

The govenment had awarded contract to BHEL for supply of machinery for the third unit of the Bellary thermal power plant and also at Erramurus in Raichur, she said, adding that the orders would continue.

However the government would float global tenders hereafter for supply of equipments for thermal power plants to be set up in future, she said.