Tata Power, Bhel to sign long-term sourcing deal

In one of the biggest public-private partnership initiative, Tata Power (TPL) will enter into an agreement with state-owned Bhel for sourcing equipment for all its future power projects. This would be the first time a private sector company placing a bulk order for a series of power projects with Bhel.

Speaking to FE, Ravi Kumar, chairman and managing director, Bhel, said a memorandum of understanding (MoU) to formalise the arrangement will be signed shortly between the two Companies.

Kumar said Bhel was also talking with Reliance Power for supplying equipment for its 4,000 mw ultra mega power project at Krishnapatnam in Andhra Pradesh. To begin with, Tata Power would source equipment for a capacity of around 5,000 mw from Bhel through the negotiated route.

The list of power projects under discussions includes the 2000-2400 mw Dehrand thermal power project in Maharashtra, the 1800 mw Maithon thermal project in West Bengal, the 540 mw Naraj Marthapur project in Orissa and the 100 mw Bhira hydro power project in Maharashtra, Kumar said.

He said Bhel is executing the 250 mw Trombay and 1050 mw Maithon power projects of Tata Power. For most of the mega capacity projects like the Dehrand and Maithon power projects, Bhel has offered its 600 mw thermal sets.

Commenting on the development, the minister of state for power Jairam Ramesh said, “I welcome such partnerships as Bhel is the domestic leader in the power equipment business and should be strengthened. A similar mega sized deal is also underway between Reliance Power and Bhel. A team from Reliance Power met me last week and desired to join hands with Bhel for the EPC contract for its Rs 17,000-crore Krishnapatnam project. Such deals will also help in cutting down cheap imports from China, which has affected the growth of the capital goods sector.”

Alongside, the Cabinet is soon expected to clear the proposal for awarding a huge bulk order of around 8000 mw of supercritical sets of NTPC with Bhel on a negotiated basis.

Ramesh said the government doesn’t favour putting Bhel under the adverse competition originating from imports of plant packages, and is taking a protective stand. A policy directive making domestic manufacturing compulsory for all foreign equipment suppliers will be issued shortly.


Source:
http://www.financialexpress.com/news/Tata-Power--Bhel-to-sign-long-term-sourcing-deal/299547/