The joint venture of Chennai-based BGR Energy and Hitachi, has emerged the lowest bidder for NTPC's bulk tender for buying supercritical turbine generator set for units of 800 megawatts each, beating rivals L&T-Mitsubishi and Alstom-Bharat Forge, sources close to the development said.
NTPC had invited bids for bulk supply of boilers and turbine generators for four projects in Karnataka, Orissa and Chhattisgarh with a total capacity of 7,200 megawatts. In the financial bids for supercritical turbine generator that were opened on Thursday, BGR Energy emerged the lowest bidder with a bid of 811 crore per turbine, followed by Larsen & Toubro -Mitsubishi Heavy Industries which quoted Rs 830 crore per turbine.
NTPC may award contract for five turbines to BGR Energy-Hitachi. Although, L&T- Mitsubishi quoted the second best price, it may get contract for only two turbine sets and state-run Bharat Heavy Electricals may get order for the other two. The rules of the bid provides Bhel "deemed L2" bidder status, which assures at least two projects. Others in the race for the turbine generator sets were - Alstom-Bharat-Forge and Toshiba-JSW Energy.
"Our 5,000-mw manufacturing unit would be commissioned by January 2013. Initially, we plan to import the first 2-3 turbines from Japan and do the balance work locally," BG Raghupathy, CMD, BGR Energy Systems told ET.Shares of BGR Energy soared 14.2% on the tender result to end at 367.65 on BSE on Thursday.
Analysts said that the result of the turbine generator tender is the second setback for L&T-Mitsubishi and Alstom-Bharat-Forge, which lost out in the race for the 800 mw steam generator packages. The financial bids for the steam generator packages, which were opened on Wednesday, saw South Korea's Doosan Heavy Industries emerging as the lowest bidder. While Doosan would supply five units of steam generator packages of 800 mw each to NTPC, state-run Bharat Heavy Electricals, which came second in the race, would supply four units, sources said.
"Pressures mounts on L&T; loss of orders to the new entrants in the forthcoming NTPC bulk tenders can be a potential de-rating factor for the stock with downward risks for their order inflows. We expect 6% growth in FY12 inflows, lower than management guidance. L&T is likely to face head winds if continued inflationary pressures and high interest rate environment persists, hurting large private sector capex," B&K Securities said in a note.