Wednesday, July 22, 2015

Bhel gets Telangana projects sans bidding

The K C Rao-led Telangana government has awarded the turnkey contract of three power projects - adding up to 6,000 MW capacity and to be built at a cost of Rs 27,360 crore ($4.3 billion) - in the state to government-owned power equipment manufacturer Bharat Heavy Electricals (Bhel) on nomination basis, without floating a mandatory competitive bid. What's more, it has also taken an in-principle decision to award all upcoming power projects to the government firm on a nomination basis, without calling for competitive bids. The move has raised eyebrows of private equipment manufacturers such as Alstom, Bharat Forge, Larsen and Toubro, Toshiba-JSW, among others, which are likely to approach the competition watchdog - Competition Commission of India (CCI). They are worried given that the newly formed Telangana state is likely to award projects worth Rs 90,500 crore to raise its electricity capacity from 4,320 MW to 25,000 MW in the next four years. ref: http://timesofindia.indiatimes.com/business/india-business/Bhel-gets-Telangana-projects-sans-bidding/articleshow/48181954.cms

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