The National Company Law Tribunal (NCLT) granted permission to GE Power to withdraw its insolvency petition against Bharat Heavy Electricals Ltd (BHEL), a public sector undertaking, on Wednesday. This withdrawal comes with the provision for revival should the operational debt remain unsettled. GE Power’s legal representatives, Akshay Sapre, along with Abhijit Swarup and Aneesha Rastogi from The Guild, informed the tribunal about BHEL’s proposal to settle an outstanding debt amounting to Rs 25 crore owed to GE Power.
The matter arises from a contract awarded to GE Power by BHEL for a project worth Rs 271 crore, involving the supply of components and services for supercritical steam generator island packages in 2016. BHEL secured this contract for the 2×800 MW coal-based Uppur Thermal Power Project from Tamil Nadu Generation and Distribution Corporation at a value of Rs 5,600 crore. While Rs 5 crore was previously paid, GE Power sought a remaining payment of Rs 36 crore from BHEL.
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In response, BHEL pledged an additional payment of Rs 25 crore according to the settlement letter. This development is aligned with BHEL’s efforts to resolve the matter through negotiation and financial reconciliation.
The Uppur project has been mired in controversy related to environmental clearances. In 2021, the National Green Tribunal suspended the environmental clearance for the plant due to ongoing debates surrounding environmental impacts, particularly the switch from imported coal to indigenous coal by TANGEDCO.
