With several of its ongoing projects facing inordinate delay and cost overrun, Tamil Nadu Generation and Distribution Corporation (Tangedco) has fixed a time-frame to provide an extension of time for the project and to levy liquidated damages on the contractor for the project delay.
The order titled “disposal of pending issues relating to delay in ongoing/commissioned projects in Tangedco and TANTRANSCO” instructed the officials to follow a fixed time-frame regarding extension of time and liquidated damages (LD). After receiving reports from the field, it should be scrutinised and processed by technical branch in headquarters in 15 days and then the accounts brand should scrutinise it in seven days. “Scrutiny and processing by audit branch and final disposal by respective office dealing the subject in seven days. The time-frame should be strictly adopted by all the offices,” the order said.
The latest order comes at a time when the ongoing thermal power projects in Chennai are facing inordinate delay in commissioning ranging from eight to 42 months due to various reasons from contractor facing financial troubles to court cases. The two 660 MW Ennore SEZ Thermal Power Plant faces the longest delay of 42 months while the 600 MW North Chennai TPP Stage III has a minimum delay of eight months. The 660 MW Ennore Thermal Power Station Expansion reels under 36 months delay.
A senior official said that fixing of time-frame would enable the corporation to levy penalties as per the tender condition for the project delay. “Hereafter the files cannot be kept pending on the project delay issues. Action has to be initiated as per the time-frame,” the official said.