As BHEL makes a settlement offer, NCLT permits GE Power to withdraw its insolvency petition

18 Aug 2023 , 10:38 AM

The National Company Law Tribunal granted GE Power permission to withdraw its insolvency petition against Bharat Heavy Electricals Ltd., a public sector enterprise, with the option to resurrect if the operational debt is not paid.

Akshay Sapre, one of GE Power’s attorneys, and attorneys Abhijit Swarup and Aneesha Rastogi from The Guild told the tribunal that BHEL had written to GE Power requesting payment of a debt of Rs 25 crore.

In 2016, BHEL awarded GE Power the contract for a Rs 271 crore project to supply parts and services for island packages of supercritical steam generators. Tamil Nadu Generation and Distribution Corporation has given BHEL the go-ahead for the 2×800 MW coal-based Uppur Thermal Power Project in exchange for a payment of Rs 5,600 crore.

GE Power was requesting that BHEL pay the remaining Rs 36 crore, of which Rs 5 crore had already been paid.

According to the letter, the public sector enterprise has agreed to pay an additional Rs 25 crore.

When it comes to environmental approvals, the Uppur project has generated debate.

The environmental clearance for the facility had been suspended by the National Green Tribunal in 2021. The court ruled that the environmental impact needed to be reevaluated because TANGEDCO had suggested using domestic coal rather than imported coal.

There have been demonstrations over pollution brought on by the construction of the power plant in Uppur, Ramanathapuram district, Tamil Nadu.

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