BHEL blames delayed payments from Genco, hurdles in EC for commissioning of YTPS

BHEL blames delayed payments and environmental clearance suspension for the delay in Yadadri Thermal Power Station project.

The authorities of BHEL, executing a majority of works of the 5×800 megawatt super-critical Yadadri Thermal Power Station (YTPS), have blamed delayed payment of bills by the Telangana State Power Generation Corporation Ltd (TS-Genco) and suspension of the environmental clearance granted in the past for the delay in the commissioning of the project.

Deputy Chief Minister and Minister for Finance and Energy M. Bhatti Vikramarka reviewed the progress of YTPS at meeting held here on Friday. The meeting was attended by Secretary (Energy) S.A.M. Rizvi, Chairman and Managing Director of BHEL K. Sadashiv Murthy, Director Tajinder Gupta and others.

Mr. Vikramarka sought to know from the officials as to who were responsible for the inordinate delay in the completion of the project. As per the agreement, first two units should have been commissioned by October 2020 and the remaining three by October 2021 to supply 4,000 MW to the grid. He also sought to know why the tenders were given on a nomination basis to BHEL against calling tenders in the competitive bidding method.

He enquired about the details of estimates prepared by TS-Genco for the construction of YTPS, rates quoted by BHEL, negotiations held with BHEL in the matter of prices, agreement value and others and instructed the Energy Secretary to submit a report with all the details.

Official informed the Deputy Chief Minister that the estimates were prepared with ₹34,500 crore, an agreement was signed with BHEL on June 6, 2015 and work order was issued to BHEL in October 2017. As per the agreement, all works should have been completed by 2021-end.

On the works handed over to BHEL, the PSU authorities explained that works worth ₹20,444 crore were given to them and the remaining works were taken up by Genco and other agencies. Of the works given to them, they had completed works worth ₹15,860 crore and ₹14,400 crore payments were made.

However, the payments were not made phase-wise and 91% of the bills were cleared in March 2023 itself. The delay in payments from Genco had delayed payments to sub-contractors causing the delay in the execution of works. The BHEL authorities stated that they would be able to complete two units by September 2024 in case the environmental clearance was secured again by April 2024. They assured to commission two more units by December 2024 and the remaining one units by May 2025.