Rajahastan scraps power project tenders won by BHEL

A Rajahastan state government company has scrapped Engineering, Procurement and Construction tenders for upcoming new super critical units.

RVUN cancelled the separate tenders floated for two 660 MW units -- each for Suratgarh and Chhabra, respectively, without specifying any particular reasons, sources added.

Bharat Heavy Electricals Ltd  officials said that no reasons have been assigned by RVUN for cancelling the tenders and the company was trying to get in touch with RUVN for ascertaining the same.

BHEL emerged as the lowest bidder for the Rs 12,000 crore worth tenders, sources said. The second lowest bidder was BGR Energy.

Calls and messages to RUVN Chairman and Managing P N Singhal did not elicit any response. BGR Energy could not be reached for comments.

The cancellation comes at a time when BHEL is grappling with slowdown in its order book. Owing to an overall sluggishness in the power sector, the company's order book more than halved to Rs 22,096 crore last fiscal compared to 2010-11 period.