BGR Energy bags Rs 1,855-cr contract from NTPC

Nellore, Andhra Pradesh-based BGR Energy Systems Limited has bagged a contract from NTPC to supply 2x660-Mw super-critical boilers, to be set up at Solapur in Maharashtra.

The order is valued at Euro 109.79 million (around Rs 735 crore) and a rupee component of Rs 1,121 crore. The execution period of the contract is 48 months. The contract provides for price variation, and foreign exchange variation risk is fully protected, the company said in a filing to the BSE on Monday.

It may be recalled that the company, which is into turnkey engineering and contracting for balance of plant (BoP) and full-service EPC for power projects, had in February 2012 emerged as the lowest bidder in the NTPC bulk tender for supply of 11x660-Mw super-critical boilers.

These projects are located in various places – Solarpur and Mouda in Maharashtra, Meja in Uttar Pradesh, Nabinagar in Bihar and Raghunathpur in West Bengal. According to the tender conditions, NTPC is to award six units of super-critical boilers to BGR Energy. A letter of award for the other two sites – Meja and Raghunathpur – is expected in the next two to three weeks.

“We would be executing this contract in collaboration with Hitachi Power Europe, Germany, and BGR Boilers,” said BGR Energy chairman and managing director, BG Raghupathy .

BGR Energy has entered into a joint venture collaboration with Hitachi Power Europe for transfer of technology and equity participation. Both the partners have set up a joint venture company – BGR Boilers Private Limited – with 70 per cent equity participation by BGR Energy and 30 per cent by Hitachi.

The JV company has already signed technical collaboration for transfer of technology for 660 Mw, 700 Mw, 800 Mw and 1,000 Mw super-critical boilers and is in the process of setting up a manufacturing facility. These boilers for NTPC will be manufactured by the JV company, the company said.

BGR Energy’s scrip ended the trade at Rs 363.60 on the BSE on Monday, up 2.26 per cent, over the previous close of Rs 355.55.