BHEL gets NTPC Talcher order, ABB loses out

NEW DELHI, NOV 4: National Thermal Power Corporation (NTPC) today awarded the Rs 1,321 crore equipment supply contract for its Talcher pr...

NEW DELHI, NOV 4: National Thermal Power Corporation (NTPC) today awarded the Rs 1,321 crore equipment supply contract for its Talcher project to Bharat Heavy Electrical after the Allahabad High Court rejected a petition filed by ABB Employees’ Unions challenging the NTPC’s decision to award the contract to BHEL.

The decision was taken at a board meeting, held here yesterday within hours of receiving the court order. "We have reconfirmed the contract to BHEL at Rs 1321 crore and the court ruling vindicates the transparent bidding mechanism of NTPC," Corporation chairman and managing director Rajendra Singh said.

The Allahabad High Court had dismissed the petition of ABB employees unions on November 3, challenging award of the steam generator contract of Talcher to BHEL, saying there was no merit in the petition’.

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Stating that BHEL had confirmed acceptance of contract for the 2000 mw super thermal power project in Orissa, Singh said that NTPC had saved about Rs 120 crore in the process of negotiatingthe contract as BHEL had first quoted Rs 1,440 crore.

In the rebid only BHEL and the consortium of ABB and combustion engineering of US had bid for the contract. Singh said that NTPC has also invited bids for Rihand and Ramagundam thermal power projects.

ALLAHABAD: A division bench comprising Justice G P Mathur and Justice Yatindra Singh said "the award of the contract is purely administrative matter" and observed "the modern trend points to judicial restraint while reviewing administrative decisions relating to contractual power of government".

"There is no merit in this petition. It is hereby dismissed," the bench ordered. The petitioners had requested the court to rescind the decision taken by the NTPC.