+
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
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App