+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code