There is a controversy over the eligibility of a joint venture (JV) between L&T (L&T Power) and Japan's Mitsubishi Heavy Industries Ltd (MHI)--to pitch for the contract to supply super critical equipment worth US$8 Billion. The only other bidder is state-run Bharat Heavy Electricals Ltd (BHEL).
At a board meeting NTPC will decide on the eligibility of the JV, whether to go ahead with the award of the contract for supply of boilers or to opt for a retender.
The efforts to boost domestic hi-tech power equipment manufacturing suffered a jolt, with just the L&T-MHI JV and BHEL bidding to supply the boilers.
L&T should have formed a joint venture with MHI and not ‘L&T Power’, a subsidiary. Subsidiary is not the main company. This doesn't qualify as per tender requirements.
The scrutiny of the two stage tender involving technical and commercial bids is under way and NTPC expects to award the contract by July.
There is an opinion that if the parent company takes the whole risk of the subsidiary then the JV can be accepted. Either L&T or MHI.The winner would have to set up factories in India to develop the local power generation equipment manufacturing industry.
No comments:
Post a Comment