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Rajasthan cancels mega order placed on BHEL

Em News Bureau ,  Monday, May 21, 2012, 17:08 Hrs  [IST]

State utility Rajasthan Rajya Vidyut Utpadan Nigam Ltd has reportedly cancelled a Rs.12,200- crore order for supercritical power equipment that it had placed on Bharat Heavy Electricals Ltd last year. The reasons for the abrupt move were not immediately available. Some reports suggest that the state utility was trying to arrive at a "better" price than what was quoted by BHEL.

In January 2011, BHEL was awarded the contract for supplying supercritical boilers and TG sets for two of RVUNL's projects — Suratgarh (2x660-mw) and Chhabra (2x660-mw). BHEL had won the order through the international competitive bidding (ICB) route.

Contenders for the deal included Power machines Group of Russia, and BGR Energy Systems in consortium with Dong Fang Electricals of China. BHEL was expected to implement the EPC contract within 36-48 months from the date of award.

Reports suggest that after winning the contract, at least four meetings between BHEL and the Rajasthan utility were held. The contract was even ready to enter the implementation mode soon, it is further learnt.

The Rajasthan tender was a morale booster to BHEL that had lost out on several supercritical power equipment orders to private players. It is also believed to have been BHEL's single largest order for supercritical power equipment.

According to a study by Electrical Monitor, BHEL's supercritical power equipment order book currently stands at 10,120 mw out of which around onethird is from private sector players. In two projects — Raichur and Udangadi (see table) — BHEL is also playing the role of a developer through minority equity holding.

Untitled Document
BHEL'S SUPERCRITICAL ORDER BOOK*
Developer Project
Capacity (mw)
   
Units
Total
Public Sector and JVs
APGenco+IL&FS Krishnapatnam, Andhra Pradesh** 2x800 1,600
Karnataka Power Corporation Bellary, Karnataka 1x700 700
KPCL+BHEL Raichur, Karnataka 2x800 1,600
NTPC Barh (Stage 2), Bihar 2x660 1,320
TNEB+BHEL Udangadi, Tamil Nadu 2x800 1,600
Private Sector
Dainik Bhaskar Power Singrauli, Madhya Pradesh 2x660 1,320
Jaypee Associates Prayagraj, Uttar Pradesh 3x660 1,980
Total
10,120
*As of April 30, 2012; list may not be exhaustive.
**BHEL to supply only the boiler package
 
                 
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