Chandigarh, Jun 21 (IANS): The Manohar Lal Khattar-led BJP government in Haryana has cancelled contracts with Chinese companies for installing pollution control equipment worth Rs 780 crore at two of its thermal power facilities, in the wake of heightened tension between the two neighbours.

The contracts had been awarded by the Haryana Power Generation Corp Ltd (HPGCL) through global tendering for the installation of the equipment in the plants in Yamunanagar and Hisar towns.

While the Beijing SPC Environment Protection Tech was awarded contract for the Deen Bandhu Chhotu Ram Thermal Power Station in Yamunanagar, the Shanghai Electric Corp was shortlisted for the Rajiv Gandhi Thermal Power Plant in Hisar.

The price quoted by them was competitive, officials admitted.

National Thermal Power Corp (NTPC) was consultant at the time of bidding the contracts.

The Union Ministry of Environment, Forest and Climate Change in its environmental guidelines in December 2015 made the installation of pollution control equipment mandatory in thermal power plants.

With the cancellation of tenders, the state government has now decided to invite fresh tenders but from companies registered in India only.

Against the tender for the power station in Yamunanagar, five bids were received, in which three were from Chinese bidders and the others from Indian bidders.

In the tender for the plant in Hisar, three firms participated, with two being Chinese and the third one domestic company with a foreign collaborator.

"In both the tenders, L-1 bidders (lowest bid) are Chinese and the prices received are competitive. Though the rate received were competitive, however, the government of Haryana has decided to cancel these tenders and to float fresh tenders based on the domestic bidding on the pattern of NTPC, which is allowing bidders which are registered in India only," a statement said.