Iraq wants Bhel contract to go to GE

Iraq has asked UK-based Power Engineers Contracting Co., which is building the Nasiryah power plant in the country, to cancel a turbine supply contract awarded to India’s Bharat Heavy Electricals Ltd (Bhel) and hand it to US-based General Electric Co. (GE), people close to the matter said.

Power Engineers had placed a 42MW gas turbine order with Bhel in November for Rs91 crore and even deposited an initial advance.

Bhel has a technology tie-up for gas turbines with GE, and with Germany’s Siemens AG for steam turbines.

“The contract requirements framed by the Iraq government clearly mentioned that the order could be placed with the technology owner (GE) or a licensee. Later they (Iraqi government) asked Power Engineers to place the order with GE,” said a Bhel executive who did not want to be identified.

more at:
http://www.livemint.com/2010/05/03220016/Iraq-wants-Bhel-contract-to-go.html