NTPC likely to call bids for boilers this week

NTPC is ready to call for price bids from shortlisted vendors for the Rs 9,000 crore contract for the bulk supply of supercritical boilers. The central utility is awaiting power ministry's go-ahead.

According to industry sources, the central utility recently submitted results of its evaluation of technical bids to the ministry, which is expected to get back soon.NTPC could could invite for price bids this week itself if it gets ministry's formal approval in time, sources said.

Four bidders — L&T, Bhel, Ansaldo and BGR Energy — had responded to the NTPC's fresh tender for the supply of 11 units of 660 mw supercritical units. Only Bhel and L&T Power had shown interest against the original tender issued by the public sector generator for the project. NTPC had to scrap the tender after L&T Power's bid was rejected on technical grounds, leaving Bhel as the sole bidder for the project.also disqualified for the supply of turbine-generators to the NTPC's project on a similar ground. However, the developer decided to go ahead with tendering as three bidders were still in the race. Bharat-Alstom has emerged as the lowest bidder for the project.

When NTPC issued original tender for the procurement of boilers in September 2009, Ansaldo had expressed interest in bidding for the project. However, it wanted two-month's extension in bid submission date. In a hurry to expedite procurement process, NTPC declined Ansaldo' request. As a result, only Bhel and L&T submitted bids. While nine units will be used in NTPC's projects, the balance is meant for Damodar Valley Corporation.

The government has envisaged introduction of supercritical power equipment in the country through bulk orders by central utilities like NTPC and Damodar Valley Corporation (DVC) for their 12 th plan projects. Following a decision by the Cabinet Committee on Economic Affairs (CCEA)in January 2009, NTPC initiated tendering for the bulk procurement of eleven sets of 660 mw supercritical boilers and turbines. While nine sets of equipment will be used in NTPC's own projects, two are meant for DVC.Bidders are required to have equipment manufacturing facility in India.To benefit from this policy, private players like Bharat Forge, L&T, JSW and BGR Energy are setting up manufacturing facility in technological collaboration with overseas partners like Alstom, Mitshubishi Heavy Industries (MHI) and Toshiba and Hitachi.