As the consignment remains stuck in spite of the NEA´s efforts to get it released from the Thai company, NEA´s ongoing projects -- mainly construction of small hydropower plants and rural electrification -- have hit a snag. [break]
However, NEA authorities rule out any likelihood of these projects -- which rural folks are desperately in need of - falling in limbo for too long a time, claiming that they would soon be able to get the consignment released from the Kolkata port.
“Till now, any of our projects has not been halted as we still have some transformers that we received in the previous consignments,” said Dr Jivendra Jha, Managing Director of the NEA, adding, “We expect to receive the new consignment as well very soon.”
Although Dr Jha refused to divulge any information as to why the Thai company halted the delivery of the consignment, some NEA officials say that it was owing to a minor misunderstanding. They say the new management of the company halted the consignment demanding extension of the expiry date of Letter of Credit (LC) signed by the NEA.
“After the delivery of almost half of the transformers, the Thai company elected a new management team through its general assembly, which set a precondition of the extension of the LC expiry date for supplying remaining equipment,” said an NEA official, requesting anonymity. “We could not strongly argue that the extension of the LC period is not required.”
Of the total 1820 medium-size transformers purchased by the NEA, the company had delivered 1,089 transformers -- 665 in first and 424 in the second lot -- in the past. The company has yet not delivered 731 transformers meant for maintaining and upgrading distribution lines of small hydropower projects.
Almost three weeks back, the NEA had sent one of its officials, Kailash Atal, to Kolkota to help release the stuck consignment. “He returned with assurances of getting the consignment very soon,” Dr Jha had told Republica shortly after Atal returned. However, no further progress has been made in this direction.
According to NEA officials, the new transformers are not meant for building a new hydropower project at all. Instead, these transformers will be used to replace old transformers that have conked out, hindering electricity supply. “Hundreds of transformers are either defunct or likely to break down,” said an NEA official. “We need to replace them all.”
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