Atlanta Electricals debarred by Bihar utility; disputes test findings
Atlanta Electricals Limited has received a debarment order from South Bihar Power Distribution Company Limited (SBPDCL), restricting the company from participating in its tenders for a period of two years, according to a stock exchange filing.
The order relates to a purchase order executed during FY2023-24 for the supply of four units of 10 MVA, 33/11 kV ONAN power transformers, with a total contract value of less than Rs 3 crore. According to the filing, the matter arose after post-delivery short-circuit testing was carried out at the Central Power Research Institute (CPRI), Bhopal, in May 2024 on one transformer randomly selected from the supplied batch.
Company’s defense
Atlanta Electricals stated that the transformer successfully withstood all short-circuit shots and met all major electrical, dielectric, thermal, and post-test performance requirements. However, during the internal inspection conducted after testing, the testing agency recorded observations related to displacement of insulating components.
The company said it disagrees with the classification of the issue as supply of “bad quality material” and has submitted a detailed representation and protest before the concerned authorities seeking reconsideration of the order. Atlanta Electricals has also requested re-testing or an independent technical review of the transformer.
The company clarified that the order was fully executed during FY2023-24 and that its value was not material in relation to its overall operations.
Track record in Bihar
Atlanta Electricals further stated that it has supplied 218 transformers of the same rating to Bihar utilities, all of which are currently operating satisfactorily. The company also noted that transformers of the same rating supplied to Bihar State Utilities have successfully undergone short-circuit testing at CPRI on 13 occasions over the last decade.
Scope of debarment
According to the filing, the debarment applies only to tenders floated by Bihar State Power Holding Company Limited and does not impact the company’s present or future business outside that scope. The company added that it may pursue legal remedies if required.
The featured photograph is for representation only.
