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Govt to place order worth Rs 18,150 crore

NTPC Ltd. | Power Generation/Distribution | Power | BSE: 532555 | NSE: NTPC

16 Jun 2009 Evaluate

In what could be a big boost to the capital goods industry, the Congress-led United Progressive Alliance government is poised to place a Rs18,150 crore order for the supply of power equipment to state-run NTPC Ltd and Damodar Valley Corp. (DVC).

Part of the government’s agenda for its first 100 days, the order is an initiative designed to attract investment and create jobs in the domestic power equipment industry. The offer will include a precondition for the supplier to set up manufacturing facilities in India.

A notice inviting tenders for the purchase of boilers and turbines, which make up the bulk of the equipment to be bought under the order, will be floated by NTPC, India’s largest power generation utility.

The government plans to place the order for 11 boilers and 11 turbines of 660MW each for NTPC and DVC, which operates thermal power stations. The government is inserting conditions in the tender to partially safeguard the interests of Bhel. The lowest bidder for boilers will be given an order for six units. If Bhel is the lowest bidder, it will get the entire order. If it is not, the government will still award it the remaining five units (of the 11), provided it agrees to match the lowest bid. If Bhel is unable to do so, an option will be given to other bidders based on their ranking. A similar system will be followed while ordering the turbines.

Private sector joint venture firms expected to participate in the tender include Toshiba Corp. of Japan along with JSW Group; Ansaldo Caldaie SpA of Italy and GB Engineering Enterprises Pvt. Ltd, Larsen and Toubro Ltd and Mitsubishi Heavy Industries Ltd of Japan.crack crack

NTPC Share Price

397.90 4.25 (1.08%)

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Company Name	CMP
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Tata Power	433.65
Adani Power	200.80
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Govt to place order worth Rs 18,150 crore

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