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ALL INDIA INSTALLED CAPACITY

ALL INDIA INSTALLED CAPACITY

Sunday, July 25, 2010

Home min still to okay foreign participation in E&M bid for NTPC's Rammam HEP

In what appears to be a roadblock for the timely implementation of the 3x40 MW Stage-III of the Rammam hydroelectric project (HEP), the power major, NTPC, is unable to award the electro-mechanical (E&M) package of the HEP, over the Rammam river, in the Darjeeling  district of West Bengal, in the absence of word from Ministry of Home Affairs (MoHA), acceding to foreign participation in the tender. The stalemate has been caused due to anticipated participation of five foreign firms, namely the Italian Franco Tosi Meccanica SpA, Ukraine-based Electrotyazhmash, Slovenian Litostroj Power doo , the Romanian firm, UCM Resita SA, and Austria-based Andritz Hydro GmbH in the bidding process for this package.

 As per norms in practice for such strategically-located power plants, NTPC is required to obtain the MoHA's nod, before letting interested foreign bidders submit price bids. While this requirement is probably aimed at the Chinese, the government's desire to appear impartial is creating severe headache for the project developer. In addition, the ministry's silence on the issue, even in the clear absence of any Chinese company in the fray, is inexplicable.

 NTPC furnished all relevant details of the bidding process to the Ministry of Power (MoP) to forward the details to the MoHA, seeking its permission to proceed, on June  3, 2010, as per the 'Guidelines for participation of foreign companies in tenders of HEPs in sensitive areas, 2009', no response is forthcoming, even after the expiry of teh stipulated 6-weeks timeline. The HEP is being developed by the NTPC-subsidiary-- NTPC Hydro Limited.

  According to NTPC, the scope of work for the E&M package would include the design, engineering, manufacture, erection, testing and commissioning of the electro-mechanical package, on EPC (engineering-procurement-construction) basis. The contractor will also be responsible for the storage, transport, delivery and the material handling work, associated with the package. 

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