Power Ministry, Ntpc Differ On Bidding Process

The Union power ministry and National Thermal Power Corporation (NTPC) have sharp differences over the equipment supply bids for the over Rs 5,000 crore Anta, Auriya, Kawas and Gandhar gas-powered projects.

While the ministry is opposing any re-bid for the projects, NTPC is planning snap bids for the Kawas and Gandhar power projects, where ABB is the only bidder.

Sources said the ministry is now even planning to give an ultimatum to the navratna company to take a final decision and award the contract at prices reduced through negotiations.

While the Bhel-Siemens consortium was the only bidder for Anta and Auriya, ABB was the shortlisted bidder for Kawas and Gandhar. However, after NTPC had invited bids, both Bhel and ABB were un-responsive. According to sources, the internal tender evaluation committee of NTPC had asked for a re-tender for 650 mw Kawas and Gandhar for which the NTPC board met late last week and was expected to decide on the fate of the bids for the projects.

 

The sources said the Union power ministry had asked NTPC before the board meeting to restrain from rebidding as it could lead to higher prices.

The board, however, did not approve this on two accounts. One, as both the bids were unresponsive, NTPC could not even negotiate with the parties. Second, it was left with only one bidder, and there was no possibility of negotiations. Both the Kawas and Gandhar projects have approved costs, including taxes and duties of Rs 1313.81 crore and 1301.38 crore

respectively.

Sources said the bids put forth by ABB had violated conditions related to the clauses which referred to the functional guarantee and operational guarantee under defects liability, whereby ABB's bid was technically unresponsive.

The power ministry feels that in case NTPC follows the committee's recommendations and goes in for snap bids by diluting some of the conditions under the bids, NTPC would land up with a much higher price than it initially received.

The sources said the dilution pertains to certain conditions under the bids which both ABB and Siemens require for their bids to be responsive.

But ministry sources said on the basis of the Central Electricity Authority's assessment, the bid conditions laid down by NTPC initially was itself incorrect and, therefore, any re-tender would not lead to the desired results.