Barh Stage-I begun in February 2005 is 3x660 Mw but it is considerably behind schedule mainly because of long-standing contractual disputes between NTPC and the Russian company Technopromexport (TPE) which is the turnkey contractor for the project. TPE is supplying the boilers and another Russian company Power Machines is supplying the turbine-generators. Unit 1 was supposed to have been commissioned by March 2009 but the current anticipated date is January 2011. The other two units are also delayed by over two years. The total cost of Stage-I is Rs 8700 crores, of which roughly Rs 3000 crores has already been spent. Material supply for the first unit is almost complete but erection work has yet to begin.

For the past few months, NTPC has been in dialogue with TPE to sort out the disputes over price and time escalations and get work resumed at the site. But there has been no breakthrough and Jairam Ramesh said that NTPC has now given time to TPE till September 24th before it starts adjudication proceedings as provided for in the contract. Jairam Ramesh also added that is a matter of the deepest regret that such a prestigious project has had to witness such delays and that he has personally intervened from time to time to ensure that the project is back on stream. This was his second visit to Barh in the last five months.