No projects for NTPC-BHEL venture

The newly set up NTPC-BHEL joint venture Power Equipment Company at Mannavaram has failed to get any projects from the state. With no outside orders, the much-hyped company is banking on works from NTPC and BHEL.

Even though the state had promised to support the joint venture by giving it projects, the high costs cited by NTPC-BHEL Power Projects Private Limited (NBPPL) led to the government and APGenco developing a cold feet.

The state has rejected NBPPL request for Balance of Plant (BOP) works of both Rayalaseema and Bhupalapalli thermal stations which are under construction.

The NBPPL had suggested three alternatives to APGenco which is executing the two thermal projects in the state. It has quoted approximately `1,850 crore for the 600 mw fourth stage of Rayalaseema thermal power station.

“But the cost NBPPL quoted is too high for APGenco which got bid around `1,255 crore from Tecpro systems consortium. This will save about `600 crore for the state,” said Mr Vijayanand, managing director of APGenco.

Even for the second unit of Bhupalapally thermal station also, NBPPL request was not considered citing the cost escalation.

ref:
http://www.deccanchronicle.com/hyderabad/no-projects-ntpc-bhel-venture-082