BGR-Hitachi JV bids lowest for NTPC's Rs16,000-crore equipment tender

A joint venture of BGR Energy Systems Ltd and Hitachi Power Europe GmbH has emerged the lowest bidder for the Rs16,000-crore contract for 11 x 660 MW super-critical boilers for state-run National Thermal Power Corporation (NTPC).

BGR Energy has emerged the lowest bidder in all five super-critical thermal power projects, for which NTPC has sought boiler supplies.

As per tender conditions, BGR Energy would be awarded contract for 7 boilers, with an aggregate value of about Rs6,500 crore, BGR Energy said in a release.

BGR Energy has competed against state-run BHEL and infrastructure major L&T, who are other qualified bidders.

BHEL, the biggest power equipment maker in India, is the second-lowest bidder, while a joint venture of Larsen & Toubro and Japan's Mitsubishi Heavy Industries emerged the third lowest bidder.

NTPC opened the price bids for supply of the supercritical boilers for nine units of 660 MW power each. Price bids for two units of 660 MW each of Damodar Valley Corp, another state-run company, were also part of the process.

The tender is for supply of 660 MW Super-critical boilers for the following projects:

  • Mouda Super Thermal Power Project, Stage-II (2 x 660 MW)
  • Solapur Super Thermal Power Project (2 x 660 MW)
  • Nabinagar Super Thermal Power Project (3 x 660 MW)
  • Meja Thermal Power Project (2 x 660 MW)
  • Raghunathpur Thermal Power Project, Phase-II (2 x 660 MW)

NTPC had to delay the process of awarding the contract for nearly a year after Ansaldo Caldaie, a bidder, which was disqualified on technical grounds, challenged the disqualification in the Delhi High Court.

It resumed the process after the Supreme Court last month overturned the high court order which had favoured Ansaldo.

NTPC will evaluate the bids submitted by the three bidders over the next few days before awarding the contract to the two lowest bidders.

NTPC plans to raise its power generation capacity to 66,000 MW by 2017 from the current 36,000 MW. The contract will help NTPC add about 6,000 MW capacity.

Other equipment makers such as Bharat Forge, JSW Energy and Thermax have partnered with international players Alstom SA, Toshiba Corp and The Babcock & Wilcox Co, respectively, to bid for the contracts.