NLCIL Raised Odisha Project Tender by ₹33.78 Crore Despite Internal Objections, Documents Reveal
indianpsu.com tried to contact Mr. M. Prasanna Kumar, CMD, NLCIL, via email to obtain his response on the matter but no reply was received
The Neyveli Lignite Corporation of India Limited (NLCIL) allegedly overruled internal objections to increase the tender value of a major rehabilitation housing project in Odisha by ₹33.78 crore — a move that appears to contravene its own contractual provisions, according to sources.
The procedural deviations relate to the construction of 537 houses, along with roads, water supply lines, and non-residential facilities for families displaced by NLCIL’s Talabira Thermal Power Project in Hirma village, Jharsuguda district.
The contract was originally awarded to RSB Projects in December 2022 for ₹138 crore, with a scheduled completion and handover deadline of July 12, 2024.
However, on April 24, 2025, the General Manager (Civil) of NLCIL issued a letter approving a 24.48% increase in contract value — taking the revised cost to ₹171.75 crore — even though substantial portions of the work were still pending.
The approval letter cited two specific revisions:
An 18.47% upward revision over quoted rates for balance works in four blocks (A, B, C, and K), which were executed beyond the original completion date.
A 23.47% increase for constructing the remaining 216 houses in the colony.
The letter also referred to a nod from a sub-committee of directors, which reportedly sanctioned the rate revisions.
Internal Dissent Ignored
Sources told www.indianpsu.com that the Chief General Manager (Civil) at NLCIL’s Central Technical Office (CTO) had earlier objected to any such revision.
In an email dated July 16, 2024, addressed to the Executive Director of the Talabira Project, the CGM categorically stated that the proposed rate escalation could not be approved under the terms of the existing contract.
The officer cited three contract clauses explicitly stating that the rates quoted by the bidder were firm and fixed for the entire contract duration. The email also recalled that NLCIL had rejected a specific request from bidders during the pre-bid meeting to include a price variation clause, confirming that price escalation was ruled out from the outset.
Despite these clear objections, the project cost was later increased by ₹33.78 crore, with internal sources indicating that the sub-committee’s approval bypassed standard technical vetting protocols.
Project Delays and Accountability Questions
The Talabira resettlement project, designed to provide permanent housing to displaced families, has already suffered multiple delays, and the recent escalation has raised questions about procedural transparency and internal accountability within the PSU.
www.indianpsu.com tried to contact Mr. M. Prasanna Kumar, Chairman and Managing Director (CMD), NLC India Limited (NLCIL), via email to obtain his response on the matter. However, he chose not to reply.
Disclaimer: The information presented in this article is based on sources believed to be reliable. www.indianpsu.com has made efforts to seek official comments from the concerned authorities/individuals mentioned herein.
