Date:02/05/2008 URL: http://www.thehindu.com/2008/05/02/stories/2008050253141300.htm

National

Super critical technology for thermal plants gets the nod

Sujay Mehdudia

Technology to be based on global bidding
Winners will have to set up facilities in India

NEW DELHI: Prime Minister Manmohan Singh has given the “go-ahead for induction” of super critical technology through 660 MW and 800 MW units in the thermal power plants to be built by the National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Limited (BHEL).

Interestingly, in order to ensure availability of indigenous technology and reduce reliance on imports, it has been stated that winners of the tender will have to set up manufacturing facilities in India with a Phased Manufacturing Programme in accordance with a pre-agreed schedule.

Lowest bids

After clearance by the Cabinet Committee on Economic Affairs (CCEA) last month, the formal approval from the Prime Minister was granted last week allowing NTPC to go in for bulk tendering of seven units of 660 MW each with the clear understanding that the lowest bidder would get the order for four units. BHEL will also participate and give a competitive bid. “If BHEL’s is not the lowest, it will get orders for three units at the price of L-I,” the order states.

The approval clearly states that bidding for the super critical technology will be based on International Competitive Bidding (ICB).

Similarly, in order to revive the long-delayed Barh Power Project, both NTPC and BHEL have been directed to finalise their negotiations for turbine generators of 2X660 units in a week’s time.

The order by the Prime Minister states that NTPC will work on 4X800 MW project at Darlipalli in Orissa, and Damodar Valley Corporation on 2X800 MW project at Kodarma in Jharkhand so that bids for six units could be issued subsequently. When the bids are issued, the lowest bidder will get four units and if BHEL is not the lowest, it will get two units. Such a bid will also be through ICB process, with mandatory condition of indigenous PMP in which BHEL will have to participate.

Joint venture

BHEL will work on their joint venture with Tamil Nadu State Electricity Board for Udangudi 2X800 MW project and pursue their bids for Krishnapatnam in Andhra Pradesh for 2X800 MW so as to maximise its orders in the 800 MW range.