Bharat Forge-Alstom lowest bidder for NTPC-DVC contract

Bharat Forge-Alstom consortium has emerged as the lowest bidder for the Rs 7,200-crore NTPC-DVC contract for the bulk supply of turbine-generators, beating competition from JSW-Toshiba and Bhel. The contract is for the supply of 11 units of 660-mw supercritical units. Of this, nine will be used by NTPC while two are meant for DVC. Disqualified bidder L&T Power has filed a special leave petition (SLP) in the Supreme Court to prevent NTPC from awarding the contract. While the SC has admitted the L&T Power’s SLP, it has refused to intervene in the matter. The Apex Court will deliver its judgment on October 22. L&T Power’s petition was earlier rejected by the Delhi High court. L&T has just forayed into power equipment manufacturing and the contract is critical as it is trying to establish itself in this space. NTPC has issued tender for bulk ordering of supercritical power equipment for projects worth 7,200 mw capacity following the government’s policy to promote development of domestic manufacturing facility and ensure expeditious indigenisation of the new technology. Bhel came second in the bidding race while JSW-Toshiba consortium was at third position. Bhel and JSW-Toshiba will also also a get a piece of the pie. However, they will have to match price quoted by Bharat Forge-Alstom combine.

As per the plan, the lowest bidder will get supply orders for 5 units and second and third lowest bidders for 4 and 2 units, respectively. NTPC and DVC are expected to award contract by the end of this month. L&T Power was disqualified by NTPC for the supply of both boilers and turbines on the ground that the required technology collaboration agreement with Mitsubishi Industries was signed by the parent company and not L&T Power. Only Bhel and L&T Power had submitted bids for the supply of boilers. NTPC had to scrap tendering and call fresh bids after L&T Power was knocked out of the race, leaving Bhel as the sole bidder for the project. However, NTPC decided to go ahead with tendering for the supply of turbine generator as three players were still in the race after L&T Power was disqualified. The government has formulated policy to encourage development of supercritical power equipment in the country. Only those who commit to set manufacturing facility in India can participate in NTPC’s tendering for the bulk supply of supercritical equipment.To benefit from the government’s policy, private players like Bharat Forge, JSW Energy, BGR Energy, GB Engineering and Thermax besides L&T are setting up manufacturing facility in India in echnological collaboration with overseas partners. Bhel is also expanding its manufacturing capacity.