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Doosan enters fray to supply boilers

Doosan enters fray to supply boilers
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First Published: Wed, Jun 01 2011. 10 45 PM IST
Updated: Wed, Jun 01 2011. 10 45 PM IST
New Delhi: Doosan Heavy Industries and Construction Co. Ltd has entered the fray to supply boilers in India’s largest power equipment tender, floated by state-owned NTPC Ltd, from the South Korean firm’s proposed factory in India.
Other firms that have submitted bids are state-owned Bharat Heavy Electricals Ltd (Bhel) and joint ventures of BGR Energy Systems Ltd and Hitachi Power Europe GmbH; Larsen and Toubro Ltd and Mitsubishi Heavy Industries Ltd of Japan; and Thermax Ltd and Babcock and Wilcox Co., according to NTPC executives familiar with the development.
The technical bids were opened on Wednesday.
A joint venture between Ansaldo Caldaie SpA of Italy and Gammon India Ltd didn’t submit a bid, the executives said. Ansaldo and NTPC are locked in a legal dispute over an earlier order.
NTPC, India’s biggest power producer, is seeking boilers and turbine generators for nine units of 800 megawatts (MW) worth Rs 18,000 crore.
The equipment will help NTPC improve plant efficiency and achieve economies of scale, besides being environment-friendly.
The order, part of India’s plans to encourage local manufacturing, bars Chinese firms as it specifies the winner would have to set up factories in India. It also guarantees state-owned Bhel an order.
“This is the first such bid by Doosan, and it is good for competition,” said an NTPC executive who declined to be identified.
Doosan couldn’t be immediately contacted for comment.
Mint had reported on 17 March that Doosan’s plans to become the first firm from South Korea to manufacture power generation equipment in India by setting up a boiler production unit.
Doosan has earlier been supplying equipment to the Indian power sector from its overseas factories.
“The technical bids... will be evaluated and post that the financial bids will be called from those who qualify. The price bids will be called in August,” said another NTPC executive who also requested anonymity.
Fuel shortages are expected to adversely affect the country’s power generation plans as the sector is the biggest consumer of coal, absorbs 78% of the total domestic production.
By 2032, about half the country’s generation capacity is expected to be coal based. To mitigate the shortfall, India is planning to set up a bulk of its capacity on supercritical and advanced ultra supercritical equipment, which are more efficient.
The technical bids for the turbine generator set orders will be opened on Friday.
The companies that have purchased bid documents for turbines include Bhel and the joint ventures between Larsen and Toubro and Mitsubishi Heavy; BGR Energy and Hitachi Power; and Bharat Forge Ltd and Alstom SA.
NTPC recently floated a tender for supply of 11 boilers and 11 turbines of 660MW each for which Ansaldo Caldaie Boilers India was disqualified by NTPC on technical grounds.
Ansaldo had approached the Delhi high court, which had directed NTPC not to open commercial bids until it decided on the matter.
NTPC is contesting the court’s decision to allow Ansaldo Caldaie Boilers India Pvt. Ltd to bid for the boiler part of the order in the Supreme Court. The next date for hearing in the apex court is 20 July.
utpal.b@livemint.com
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First Published: Wed, Jun 01 2011. 10 45 PM IST