India plans to get Bhel to bid for Bangladesh power project

In an attempt to thwart China’s plan to corner the construction contract for a $1.68 billion power project in Bangladesh that India is helping its neighbour build in the electricity-starved country, India wants Bangladesh to allow state-owned Bharat Heavy Electricals Ltd (Bhel) to bid for it. As part of India’s strategy to exert economic and strategic influence in the neighbourhood by developing infrastructure, state-owned NTPC Ltd plans to set up coal-based power projects in Bangladesh. Accordingly, bids for the 1,320 megawatts (MW) Khulna project, also termed the Maitree (friendship) project, that may have a final capacity of 2,640MW are to be called shortly. According to preliminary bid conditions yet to be finalized, Bangladesh Power Development Board (BPDB) wants to put in a qualifying condition that the prospective bidder must have a 500MW running unit overseas. While this may allow Chinese, Japanese, Korean and European manufacturers to compete for the tender, India’s Bhel doesn’t qualify. “The bids for the construction of Bangladesh-India Friendship Power Company (Pvt.) Ltd, which is being developed in an equal joint venture by NTPC and BPDB, are to be called shortly,” a person aware of the development said, requesting anonymity. “The tender documents which are yet to be placed may have the 500MW overseas running unit condition. While this may allow Chinese, Japanese, Korean and European manufacturers to compete for the tender. NTPC will oppose it to give Bhel a chance to compete.” more at : http://www.livemint.com/Industry/B1nAcv17KlG2KC56mKfTKM/India-plans-to-thwart-China-get-Bhel-to-bid-for-168-billi.html