BGR Energy to get lion's share of NTPC's Rs 16,000 cr tender

A joint venture between BGR Energy Systems and Hitachi Power Europe GmbHhas emerged the lowest bidder for the Rs 16,000 crore power equipment order from NTPC , an official at the state-run power producer said.

State-run BHEL has emerged the second-lowest bidder, while the JV between Larsen and Toubro and Mitsubishi Heavy Industries was placed third lowest.

Shares of BGR Energy surged 6 percent following reports that the company is likely to win orders from NTPC for commercial boilers. Shares of Bharat Heavy Electricals ( BHEL ) also climbed 2 percent as the company is also believed to have won partial orders from NTPC. However, Larsen & Toubro, which was also in race before NTPC opened its bids today morning,declined 2 percent as reports suggest it is now out of the race.

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NTPC opened the price bids on Wednesday for supply of the supercritical boilers for nine units of 660 MW power each.

The orders will be awarded after the price bids 'as quoted' by the three bidders are evaluated in the next few days, the NTPC official said, and given to two lowest bidders.

The process of awarding NTPC's equipment order was delayed by more than a year after utility boiler maker Ansaldo Caldaie challenged its disqualification on technical ground in the Delhi High Court.

The Delhi High Court stayed opening of price bids and later ruled in favour of Ansaldo. After India's top court overturned the High Court's order last month, NTPC resumed the process.

Reuters