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India’s Top Court Quashes Ansaldo Venture Bid for NTPC Contract

India’s top court overruled an order that enabled Ansaldo Caldaie Boilers India Pvt. to bid for a contract to supply equipment to NTPC Ltd. (NTPC), the nation’s biggest electricity generator.

The Delhi High Court’s “order to allow Ansaldo to bid for the tender is quashed,” Altamas Kabir, one of two judges on the panel that heard the case, said in the Supreme Court in New Delhi today.

State-owned NTPC (NTPC) sought bids for equipment valued at 110 billion rupees ($2.4 billion) for the expansion of its power plants and rejected Ansaldo Caldaie’s bid because it wasn’t a qualified manufacturer. Ansaldo Caldaie, a venture between Gammon India Ltd. (GMON), an Indian construction company, and Italy’s Ansaldo Caldaie SpA, contested the decision.

“The tender document did not contain provision for acquiring equipment from a third party,” Kabir said while reading out the judgment in the courtroom. The bidding process will continue, he said.

The lower court ordered NTPC in March last year to allow Ansaldo Caldaie to proceed to the next stage of price bids and participate in the technical discussions.

NTPC is ordering 11 units of steam generators of 660 megawatts each for projects at Mouda, Solapur, Nabinagar, Meja and Raghunathpur.

To contact the reporters on this story: Pratap Patnaik in New Delhi at ppatnaik2@bloomberg.net; Rajesh Kumar Singh in New Delhi at rsingh133@bloomberg.net

To contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net; Amit Prakash at aprakash1@bloomberg.net

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