Costly equipment cost NTPC its Sasan project bid

Costly equipment cost NTPC its Sasan project bid

New Delhi: Electricity producer NTPC Ltd, which lost the bid for Sasan Ultra Mega Power Project, felt that the equipment cost quoted by supplier Bhel for the project was high, the Rajya Sabha was informed today.

NTPC placed a bid of Rs2.12 per unit, which was way above the winning bid of Rs1.19 per kwh by Lanco-Globeleq. However, the project has since been awarded to Reliance Power after the winning consortium led by Globeleq was disqualified.

NTPC and Bharat Heavy Electricals Ltd (Bhel) had entered into an agreement of exclusivity for the supply of boiler and turbo-generator equipment for the 4,000 MW Sasan project in Madhya Pradesh, Power Minister Sushilkumar Shinde said in a written reply in the upper house of Parliament.

“The total price quoted by Bhel in rupees considering the then prevailing exchange rate is Rs16,011.53 crore," he said.

“In view of the high price quoted by Bhel, NTPC had considered the plant/equipment cost based on the cost of similar equipment previously awarded through the process of competitive bidding for its projects and submitted bids for 660 mw units," the minister said.

Bhel had quoted the price for 5x800 mw Sasan UMPP for undertaking design, engineering, supply, delivery to the site, erection, testing and commissioning of power plant.

The state-run power equipment maker, has been a bone of contention between the Ministry of Heavy Industries, its promoter, and the Power Ministry which blamed it for slippages in the 10th plan power capacity addition target.

The Power Ministry has also been promoting the idea of NTPC getting into equipment manufacturing.