NTPC to disqualify Power Machines, three left in fray

Russia’s Power Machines is likely to be disqualified from the Rs 20,000 crore turbines and generators bids by NTPC. Only three companies — BHEL, Bharat Forge-Alstom and JSW-Toshiba — are left in fray for the bulk deal. L&T Power has already been disqualified on technical parameters.

 NTPC is likely to disqualify Power Machines as the Russian company has not undertaken the commit ment to set up a manufact uring base for power gener ation turbines and generat ors, a senior official in power ministry said. However, the country’s top power generat or is not likely to go for fresh tendering of turbine gene rat or package as there are enough options available.

  “Anyone who does not commit to set up an indigenous manufacturing base will be disqualified. The purpose behind bulk tendering was to encourage domestic production,” the official said.

 As per NTPC bidding guidelines, an undertaking supported by board resolution to set up a manufact uring facility for supercritic al sets in a phased manner was required to be submitted by bidders who do not have a base in the country. The selected bidder was also required to submit a bank guarantee of Rs 65 crore for every bid as security.

 The government had introduced the domestic manufacturing clause to promote supercritical tech nology, which relatively is a new area for Indian manufacturers.

 The government has already decided that of the 11 units being bid out, six will be awarded to Bhel if it emerges as the lowest bidder. The country’s largest power equipment maker would get at least five units provided it agrees to match the lowest price.

 The ministry official said turbine generator packages are likely to get delayed by at least 3-4 months. “NTPC will not call price bids for turbine generators in isolation. Contracts for boilers and turbine generat ors have to be awarded simultaneously.”The bidders were requir ed to furnish an undertaking for transfer of technology. L&T Power was disqu alified on technical parame t ers by both boilers and turbine generator deals.

 NTPC had floated separate tenders for sourcing mega boilers and turbine generator packages in Octo ber last year. The total cost of both the tenders was about Rs 45,000 crore. The company seeks to pro cure energy-efficient supercritical main plant equip ment for projects totaling 7,260 mw in capacity.