NTPC, country's largest power generator, has warned Technopromexport, the Russian power equipment supplier, of legal action if the latter does not resume work at NTPC's power project in Bihar.

The dispute relates to NTPC's Barh stage-I project, where the Russian company is supplying boilers for three units of 660 MW each.

The work at the Rs 8,700-crore (Rs 87-billion) project has come to a standstill and is now running two years behind schedule, owing to the dispute between NTPC and TPE.

"For the past few months, NTPC has been in dialogue with TPE to sort out the dispute over price and time escalation and get the work resumed at the site," said a press statement issued by the ministry of power on Sunday.

Further details were not disclosed. With the dispute remaining unresolved, NTPC has given time till coming Wednesday, after which the state-owned power utility plans to start adjudication proceedings as provided for in the contract.

NTPC has already spent about Rs 3,000 crore (Rs 30 billion) on the project, whose total cost is estimated at Rs 8,700 crore. 

The state-owned Navratna company's warning to TPE was announced by Minister of State for Power Jairam Ramesh today, while launching the stage-II of the Barh power project in Bihar.

The total capacity of the stage-II, which is estimated at Rs 7,340 crore (Rs 73.4 billion), is 1,200 MW and employs two units of 660 MW each to be supplied by Bharat Heavy Electricals [Get Quote] (Bhel), India's largest power equipment manufacturer.