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

BPTP Appoints Vineet Nanda as Chief Business Officer

BPTP has announced the appointment of Vineet Nanda as Chief Business Officer. The company has a development footprint of over 50 million sq ft across residential, commercial and mixed-use projects, with more than 25,000 units delivered across key markets in Gurugram, Faridabad and Noida.Nanda brings over four decades of professional experience, including more than 25 years in senior leadership roles within the Indian real estate sector. His background spans sales, marketing and business management across residential and commercial developments. Prior to joining BPTP, he served as Director – ..

Next Story
Resources

Jyoti Structures Secures Key ISO Certifications from TÜV

Jyoti Structures has secured ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management) and ISO 45001:2018 (Occupational Health and Safety Management) certifications following a comprehensive audit by TÜV, one of the world’s leading certification bodies. The certifications cover the company’s engineering, procurement and construction operations across transmission, substation and distribution projects.The certifications follow an extensive, organisation-wide assessment of systems and processes, including design, engineering, manufacturing, procurement, erection and comm..

Next Story
Infrastructure Energy

KEC International Secures Rs 10.5 billon in New Orders

KEC International has secured new orders worth Rs 10.5 billion across its key business segments, marking a significant addition to its order book. The latest wins include the company’s maiden entry into the wind energy segment through a 100+ MW Balance of Plant (BoP) project in southern India for a leading private developer.In the civil segment, the company has received an order in the Buildings and Factories (B&F) segment for a downstream project in western India from a major steel player. The transmission and distribution business has secured orders for the supply of towers, hardwa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App