NLCIL faces scrutiny over Rs 337.8 million tender hike in Odisha
Real Estate

NLCIL faces scrutiny over Rs 337.8 million tender hike in Odisha

The Neyveli Lignite Corporation of India Limited (NLCIL) has reportedly overridden internal objections to raise the tender value of a major rehabilitation housing project in Jharsuguda, Odisha, by Rs 337.8 million, allegedly in breach of its own contract rules, according to sources.

The cost escalation relates to the construction of 537 houses, along with roads, water supply systems, and community facilities for families displaced by NLCIL’s Talabira Thermal Power Project in Hirma village.

Originally, NLCIL awarded the contract to RSB Projects in December 2022 for Rs 1.38 billion, with a completion deadline of 12 July 2024. However, on 24 April 2025, the General Manager (Civil) of NLCIL issued a letter approving a 24.48 per cent increase in the project value, raising it to Rs 1.72 billion, even though significant portions of the work remained unfinished.

Rate revisions and internal dissent

According to the letter, the escalation covered:

An 18.47 per cent increase for balance works across four housing blocks (A, B, C and K) completed beyond the original deadline.

A 23.47 per cent hike for constructing the remaining 216 houses.

The approval cited clearance from a sub-committee of directors, which had endorsed the rate revisions.

However, internal correspondence reviewed by sources revealed that the Chief General Manager (Civil) at NLCIL’s Central Technical Office had strongly objected to any cost escalation. In an email dated 16 July 2024, addressed to the Executive Director of the Talabira Project, the CGM stated that rate increases were not permissible under the signed contract.

The officer cited three contract clauses that made the quoted rates firm and fixed for the entire duration of the agreement. The same email also referenced an earlier pre-bid meeting where bidders had requested a price variation clause, which NLCIL had expressly declined, confirming that no escalation would be allowed.

Despite these provisions, the tender value was revised upwards by over Rs 330 million, with insiders suggesting that the sub-committee’s approval bypassed standard technical evaluation procedures.

Delays and transparency concerns

The Talabira rehabilitation project, intended to house displaced families, has already faced multiple delays, and the latest cost escalation has raised concerns about procedural integrity and internal accountability within the public sector enterprise.

Industry observers note that such deviations from established contract norms could invite regulatory scrutiny and calls for an internal audit, especially given the project’s public significance and funding.

The Neyveli Lignite Corporation of India Limited (NLCIL) has reportedly overridden internal objections to raise the tender value of a major rehabilitation housing project in Jharsuguda, Odisha, by Rs 337.8 million, allegedly in breach of its own contract rules, according to sources. The cost escalation relates to the construction of 537 houses, along with roads, water supply systems, and community facilities for families displaced by NLCIL’s Talabira Thermal Power Project in Hirma village. Originally, NLCIL awarded the contract to RSB Projects in December 2022 for Rs 1.38 billion, with a completion deadline of 12 July 2024. However, on 24 April 2025, the General Manager (Civil) of NLCIL issued a letter approving a 24.48 per cent increase in the project value, raising it to Rs 1.72 billion, even though significant portions of the work remained unfinished. Rate revisions and internal dissent According to the letter, the escalation covered: An 18.47 per cent increase for balance works across four housing blocks (A, B, C and K) completed beyond the original deadline. A 23.47 per cent hike for constructing the remaining 216 houses. The approval cited clearance from a sub-committee of directors, which had endorsed the rate revisions. However, internal correspondence reviewed by sources revealed that the Chief General Manager (Civil) at NLCIL’s Central Technical Office had strongly objected to any cost escalation. In an email dated 16 July 2024, addressed to the Executive Director of the Talabira Project, the CGM stated that rate increases were not permissible under the signed contract. The officer cited three contract clauses that made the quoted rates firm and fixed for the entire duration of the agreement. The same email also referenced an earlier pre-bid meeting where bidders had requested a price variation clause, which NLCIL had expressly declined, confirming that no escalation would be allowed. Despite these provisions, the tender value was revised upwards by over Rs 330 million, with insiders suggesting that the sub-committee’s approval bypassed standard technical evaluation procedures. Delays and transparency concerns The Talabira rehabilitation project, intended to house displaced families, has already faced multiple delays, and the latest cost escalation has raised concerns about procedural integrity and internal accountability within the public sector enterprise. Industry observers note that such deviations from established contract norms could invite regulatory scrutiny and calls for an internal audit, especially given the project’s public significance and funding.

Next Story
Resources

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Next Story
Real Estate

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Next Story
Real Estate

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement