NTPC bulk tendering for 11 new units from next week

India’s largest power generator, NTPC, whose follow-on public offer (FPO) would open on February 3, would begin the process of inviting tenders for 11 supercritical units (which use less coal) of 660 Mw each on February 12.

The request for qualification (RFQ) would open on February 3. These units are Tanda extension (NTPC, 2x660 Mw); Solapur power project (NTPC, 2x660 Mw); New Nabinagar, a joint venture between NTPC and Bihar State Electricity Board (3x660 Mw); Meja, a JV of NTPC and Uttar Pradesh Rajya Vidyut Utpadan Nigam (2x660 Mw) and the Raghunathpur project of Damodar Valley Corporation (2x660 Mw).

Besides, the Union power ministry is finalising modalities for a bulk tender in March of seven units of 800 Mw each.

I C P Keshari, joint secretary in the power ministry, told Business Standard here today: “The decision has been taken to go for the bulk tendering of supercritical units so that domestic manufacturing capacity is established in the country with at least one new manufacturer (other than Bharat Heavy Electricals Ltd).” NTPC was to invite the RFQ for these units from January 28, but this was deferred to February 12 to clarify some queries from bidders.

Keshari, who was speaking at the sidelines of an NTPC press conference on its proposed FPO, hoped it would invite the request for proposal (financial bids) by May-June and subsequently award the contracts by July.

He said BHEL was expanding to reach 15,000-Mw manufacturing capacity by March 2010 and then further to 20,000 Mw by March 2012. Besides, L&T and Mitsubishi, Bharat Forge & Alstom, NTPC & BHEL, JSW and Toshiba, and GB Engineering & Ansaldo have formed joint ventures for like manufacture. According to Keshari, these JVs would be in a position to participate in the proposed RFQ.

Meanwhile, the Centre would soon take a decision on the direct sale of a portion of the 5,500 Mw of unallocated quotas (whose allotment is at central discretion) through power exchanges or by NTPC. The power ministry has drafted a cabinet note on the sale of a portion of the unallocated quota directly by NTPC. Besides, states which provide non-discriminatory open access would get incentives to buy power from the unallocated quota.