Saturday, January 29, 2011

Comptroller and Auditor General (CAG) advises NTPC to look for alternative to BHEL

National Thermal Power Corporation is scouting for new suppliers to speed up pending power projects, a move that may deprive equipment-supplier Bharat Heavy Electricals of a big chunk of contracts in the future.

NTPC counts heavily on BHEL for its projects but supplies have been delayed at times. The Comptroller and Auditor General (CAG) of India has advised NTPC to look for alternative suppliers as BHEL had delayed supplies for projects such as Sipat Stage 2, Farakka, Bhilai and Jhajjar.

"Earlier, we did not have much options. Now, with the opening up of the market, new manufacturers are coming in. These manufacturers have participated in the open bulk tender for the upcoming 9 units of 660MW. NTPC has invited bids from other companies as well for some of its newer projects," an NTPC official said.

BHEL said that delays were sometimes caused by factors beyond its control. "Certain projects like Barh stage 1 and Sipat stage 1 are behind schedule by up to 30-48 months because of delay in the execution of the main plant packages. The Main Plant packages of these projects are ordered on foreign suppliers," a spokesperson for BHEL said.

ref:
http://economictimes.indiatimes.com/news/news-by-industry/energy/power/ntpc-looks-for-suppliers-to-power-pending-projects/articleshow/7382671.cms

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