Bharat Heavy, Alstom Among Five Bidders for NTPC Turbine Order

Bharat Heavy Electricals Ltd. (BHEL), Alstom SA (ALO) and Larsen & Toubro Ltd. (LT) are among five power-equipment makers that have bid for orders to supply turbines to NTPC Ltd., India’s biggest electricity-generating utility.

The companies submitted technical bids for nine 800- megawatt supercritical turbines, NTPC Chairman Arup Roy Choudhury said by telephone today in New Delhi. “May be we will open the bids in September as we are obligated to award the projects by November,” he said.

India, the world’s second-fastest growing major economy, plans to add 120,000 megawatts of generation capacity in the next six years to reduce a peak power deficit that reached 9.8 percent in the year ended March 31. NTPC expects to build 30,500 megawatts during the period, Choudhury said.

The winning bidders must set up manufacturing units locally, said Power Secretary P. Uma Shankar.

“The intention isn’t to neglect foreign manufacturers, but to improve domestic power manufacturing capabilities,” Shankar said by telephone today from New Delhi.

Bharat Heavy bid for the turbine contract jointly with Siemens Ltd. Alstom is in partnership with Bharat Forge Ltd. (BHFC), while Larsen has a venture with Mitsubishi Heavy Industries Ltd. (7011) Hitachi Ltd. bid with BGR Energy Systems Ltd. and Toshiba Corp. (6502) with JSW Energy Ltd. (JSW)

NTPC is ordering turbines and boilers for three 1,600 megawatt plants and one 2,400 megawatt project, valued at a combined 100 billion rupees ($2.2 billion), Choudhury said.

The Alstom, Hitachi, Larsen and Bharat Heavy ventures have bid to supply boilers for the projects, along with Thermax Ltd. (TMX) in partnership with Babcock & Wilcox Co. (BWC) and South Korea’s Doosan Heavy Industries and Construction Co., which is competing on its own, according to Choudhury.

To contact the reporter on this story: Kartikay Mehrotra in New Delhi at kmehrotra2@bloomberg.net

To contact the editor responsible for this story: Arijit Ghosh at aghosh@bloomberg.net

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