GUWAHATI, July 21 � The National Hydroelectric Power Corporation (NHPC) is under the Central Vigilance Commission�s (CVC�s) scanner, as it has allegedly awarded the construction contract of the Lower Subansiri Hydroelectric Power Project to Larsen and Toubro Ltd (L&T) at a much higher rate.
According to the energy portal Energylineindia.com, the LSHEP contract was awarded to the L&T �at a rate that was several times higher than what should have been�.
�The company did not comply with the pre-qualification criteria either and yet it was awarded the contract,� said the energy sector news portal. This has brought the NHPC under the CVC scanner.
According to the news portal, the CVC has claimed that the NHPC officials favoured the L&T by awarding the work of construction of surge tunnels, surge shafts etc on a single bid basis costing an amount of Rs 422 crore. The work could have been executed under General Condition of Contract or Conditions of Particular Application, but neither these was done in this case, said the report.
Even the Board of Directors of the NHPC was not consulted before awarding the contract to the L&T.
It is alleged that the L&T did not even qualify for the contract awarded to it. An applicant is required to meet the pre-qualification criteria as part the bid process.
The pre-qualification criteria required an applicant should have constructed a tunnel of eight metre or above diameter before and should have carried out tunnel heading excavation at an average rate of 10,000 cubic metres per month or above in an ongoing or completed project. The L&T did not have such an experience. However, its joint venture partner Hochtief Construction had it. The pre-qualification criterion is to be individually met by all the partners. Moreover, the L&T later decided to go alone for the techno-commercial bid.
The NHPC�s vigilance committee observed that even the completion schedule of 41 months granted to the L&T has deviated from the schedule approved by the Union Power Ministry, said the Energylineindia report.