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NTPC Terminates Coal Mining Contract with BGR Mining & Infra

Coal News - Published on Fri, 12 Jul 2019

Image Source: Moneycontrol
India's largest electricity producer NTPC has terminated contracts it had awarded to BGR Mining & Infra Ltd for development of its coal mines in Jharkhand and Chhattisgarh over allegations of corruption against senior officials of the private mining company. NTPC has terminated contracts for development and operation of Chatti-Bariatu coal mine in Jharkhand and Talaipalli coal mine in Chhattisgarh, according to two separate letters dated July 4, 2019 sent by the state-owned company. An e-mail sent for comments to BGR Mining on the address for media queries mentioned on its website did not elicit a response. Calls made to its senior director I Sudhakara Reddy too went unanswered.

The state-owned firm had awarded mine and development contract of the Chatti-Bariatu mine to BGR in November 2017. In the same month, it had awarded a similar contract for the Talaipalli mine to a consortium of NCC Ltd and BGR Mining. Chatti-Bariatu mine was supposed to produce 7 million tonne of coal a year for use at NTPC's 1,320 MW Barh power plant for generation of electricity. Talaipalli coal mine was to produce 18 million tonne of coal per annum for use at NTPC's 4,000 MW Lara Power Project.

NTPC wrote to BGR in the two similarly worded letters, said that "Subsequent to the award of subject contract, an FIR on December 7, 2017 has been registered by CBI for criminal conspiracy, public servant obtaining valuable thing without consideration from person concerned in proceeding or business transacted by such public servant and abetting public servant for obtaining illegal gratification."

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Posted By : Rabi Wangkhem on Fri, 12 Jul 2019
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