BHEL-led consortium may sell Rs 55k-cr equipment to NTPC

It’s being billed as one of the biggest stand-alone power equipment contracts in recent memory. NTPC is in talks with a Bhel-led consortium, also involving Alstom and Siemens, to buy boilers/turbines worth Rs 55,000 crore for its string of upcoming 600-mw and 800-mw units.

Significantly, NTPC will require Cabinet clearance as it proposes to award the contract on a negotiated basis and not the tendering route. The company’s top brass has already sounded out the Union Cabinet secretary and the power minister in this regard, sources in top government circles said. The Bhel-led consortium will supply boilers and turbines for NTPC’s power ventures that embrace super-critical thermal technology. Boilers and turbines form the core of a power station.

Though details are not known, the contract will involve procurement of boilers/turbines for some 10 to 12 odd upcoming NTPC projects. On receiving Cabinet clearance, NTPC plans to award the Bhel-led consortium the boiler/turbine package for the 650x2-mw Barh super critical project in Bihar. Alstom will supply boilers while Siemens will supply turbines.

Interestingly, construction at Barh is yet to begin even though the project was inaugurated three years ago.
At this stage, NTPC officials remain tight-lipped. The company’s spokesperson declined to comment on the issue. However, a source close to the development said: “Bhel along with Alstom and Siemens had approached NTPC some time ago for a bulk contract to supply boilers/turbines for units with capacities of at least 600 mw.

NTPC wanted a bulk contract since it doesn’t have the requisite super-critical technology for manufacturing equipment. But Bhel’s partners are ready to transfer the technology only if it can bag the bulk order.”

The source further said, “If the tendering process is adopted, Bhel’s partners will also not be ready to a transfer technology since there is no assurance of contracts even for a single project being awarded. Hence, instead of piecemeal contracts for super-critical projects being awarded to Bhel, it will be easier if it receives a large contract,” said an NTPC source.

ET could not get an official comment from either Bhel or any of the other consortium partners on the technology-transfer issue. Going forward, in its target to remain the largest generating utility of India, NTPC has decided to maintain or improve its share of India’s generating capacity. Towards this end, it has targeted to build an overall installed capacity of over 66,000 mw by 2017.

Source:
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/BHEL-led_consortium_may_sell_Rs_55k-cr_equipment_to_NTPC/articleshow/2951733.cms