The decision of the Chhattisgarh government to award the contract to the Chinese company was taken despite strong protest from the state-run Chhattisgarh State Electricity Board Employees' Federation, which wanted Bharat Heavy Electrical Ltd to take up the project.
"The Chinese company had built a power plant in Korba (for Vedanta-owned Bharat Aluminium Company - Balco). But after commissioning, faults were regularly developing, which had affected the work in Balco," the federation's state president TT John told Business Standard.
The federation, commonly known as the Janata Union, mounted pressure in favour of Bhel. But the CMEC quoted the lowest rate and got the deal on its side.
According to a senior board official, CMEC quoted Rs 3.61 crore (Rs 36.01 million) per Mw while the rate of other players was much higher.
The National Thermal Power Corporation, which was appointed consultant, finalised the CMEC and recommended to award the contract to the company.
The board official said the Letter of Intent had been issued to the CMEC with a proposal to design the two plants with a capacity of 300 Mw each instead of 250 Mw as proposed earlier.
The company had, however, underlined a few points in the Letter of Intent that were not acceptable to it and had urged the state power board to change a few conditions and clauses.
After examining, the board officials had agreed to make the required change in the LoI and hand over a fresh one in the next couple of days.
