Energy Efficiency Services Ltd (EESL), the state-run agency that’s implementing a nationwide smart meter programme, will encash the financial institution assure supplied by Indonesia’s PT Hexing after cancelling a contract for two million smart meters over its failure to fulfill native manufacturing norms.
“We will encash the Rs 25 crore bank guarantee submitted by PT Hexing. They failed to meet the tender conditions that made it mandatory to manufacture these smart meters in India,” mentioned Saurabh Kumar, govt vice-chairperson, EESL Group.
EESL has additionally returned 10,000 meters equipped by the agency, mentioned to be owned by Hangzhou, China-based Hexing Electrical Co.
India has responded to the incursion by Chinese troops in Ladakh by progressively snapping financial ties with its largest buying and selling associate. The steps embody barring Chinese corporations from state-run initiatives.
After PT Hexing’s disqualification and India’s new public procurement guidelines for obligatory buy choice to native suppliers, the corporations eligible to take part in the snap bid known as by EESL for supplying three million meters embody Genus Power Infrastructures Ltd, Larsen and Toubro and HPL Electric and Power Ltd. PT Hexing couldn’t be contacted for feedback.