Setback to Larsen & Toubro - Delhi High Court refuses its plea to stay bidding process by state-owned NTPC

In a setback to L&T, the Delhi High Court today refused its plea to stay the bidding process by state-owned NTPC, after the infrastructure major was disqualified from the Rs 25,000 crore power equipment tender."We are not inclined to pass any interim relief in favour of L&T," the Delhi High Court said.It also refused to intervene in the bidding process which would proceed as usual. "We are not inclined to intervene in bidding process," the court said.

L&T had dragged NTPC to the court after it disqualified L&T Power's bid in the Rs 25,000 crore bulk tender citing technical irregularities.NTPC had issued tender for bulk ordering of supercritical power equipment for 7,200 MW projects, with a pre-condition that the bidder should have manufacturing facility in India in order to promote domestic companies.

L&T Power was disqualified by NTPC for supplying boilers and turbines on the ground that the technology collaboration agreement for equipments was between its parent (L&T) and Mitsubishi Industries Ltd, and not directly with L&T Power. itself.NTPC said it had to scrap the tender and call for fresh bids after L&T Power's disqualification because BHEL was the sole bidder left for the project.