Date:04/12/2008 URL: http://www.thehindu.com/2008/12/04/stories/2008120455811600.htm

Business

Prime Minister approves bulk ordering of super critical technology

Special Correspondent

NEW DELHI: Giving a major thrust to promotion of public sector undertakings (PSUs), Prime Minister Manmohan Singh has approved the decision of the Group of Ministers (GoM) on Infrastructure for bulk ordering of super critical technology giving preference to Bharat Heavy Electricals Limited (BHEL) in the procurement of 660 MW and 800 MW units by National Thermal Power Corporation (NTPC) and other PSUs.

Highly placed sources said that the Prime Minister had put his stamp of approval on the decision of GoM taken on November 17 in this regard.

It was decided in the GoM that whenever NTPC goes in for bulk procurement of seven units of 660 MW and six units of 800 MW, the lowest bidder (including BHEL) would get orders for four units of 660 MW and four units of 800 MW separately.

Source said that this move would help BHEL fully absorb and indigenise the super critical technology at much faster rate as minimum 8-10 sets were required to absorb and indigenise the technology completely.

New bidding norms

Under the new approved GoM decisions, the bidder must have a valid technology transfer agreement in place for the entire range of super critical equipment with a phased manufacturing programme.

The bidder should not be qualified to participate in the tendering process based on memorandum of understanding with his collaborator or foreign manufacturer.

Union Minister of State for Power Jairam Ramesh said that the technology transfer agreement for super critical technology up to 1,000 MW was already in place with world leaders like Alstom and Siemens and other leading OEMs (original equipment manufacturers) like TLT, Germany, MHI, Japan, and Max Control, U.S., for auxiliaries.