Energy

Norms eased to draw in more suppliers for power equipment


India’s apex planning and advisory body for the power sector has eased a key condition for power equipment supplies for public sector projects, a move that is expected to let utilities to issue tenders allowing larger private vendor participation, people familiar with the development said. This change was advised after some recent tenders from companies such as NTPC and Damodar Valley Corporation to build thermal projects under engineering-procurement-construction (EPC) contracts received muted response. Some of these projects saw single bids.

The Central Electricity Authority (CEA) has relaxed the pre-qualification requirements, allowing companies with experience in erection of ‘sub-critical’ units to participate in ‘supercritical’ projects to encourage competition. Public sector undertaking Bharat Heavy Electricals Ltd and Larsen & Toubro are said to have been among the few qualified under the earlier regime. It is now expected that Thermax, GE Power as well as some other companies will also qualify for the tenders under the relaxed qualifications. “A decision to make this change was made in April,” a senior official aware of the move told ET.

Norms Eased to Draw in More Suppliers for Power Equipment

The previous condition of experience of establishing supercritical units was limiting vendors from participation, according to two officials. The tender for NTPC’s 1,600 MW Singrauli-III thermal power station saw just one bid and the quoted price was “high”, said another official. There was also only one bidder for Damodar Valley Corporation’s Raghunathpur Phase-II project and the company is likely to go for a rebid. Retendering for the Damodar Valley project is expected to be made under the amended condition. Power generators can decide on the mode of tendering – split, single EPC or package wise.

Utilities may explore addition of consortium routes with limited joint and several responsibilities for the tenders, the person said.

The power ministry had held meetings with stakeholders to discuss factors leading to lukewarm response by vendors, a person familiar with the matter said.



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