South Korea’s Doosan Pips Local Cos to Bag NTPC
Deal
South Korea’s Doosan Heavy Industries has emerged the lowest bidder for NTPC’s bulk tender to buy supercritical equipment, upsetting domestic manufacturers such as Bharat Forge, Larsen & Toubro and Thermax, sources close to the development told ET.
While Doosan would supply five units of steam generator packages of 800 megawatt each to NTPC, state-run Bharat Heavy Electricals, which came second in the race, would supply four units, the sources said.
South Korea’s Doosan Heavy Industries has emerged the lowest bidder for NTPC’s bulk tender to buy supercritical equipment, upsetting domestic manufacturers such as Bharat Forge, Larsen & Toubro and Thermax, sources close to the development told ET.
While Doosan would supply five units of steam generator packages of 800 megawatt each to NTPC, state-run Bharat Heavy Electricals, which came second in the race, would supply four units, the sources said.
Analysts said that the results of the bid would
be a big set back for L&T-Mitsubishi Heavy Industries, Thermax-Babcock
& Wilcox, Alstom-Bharat-Forge and BGR-Hitachi, which were eyeing a share of
the tender that was one of the biggest for power equipment the country has ever
seen.
“There has been a slowdown in orders from power
utilities in the domestic market and the entry of a new competition in the
shape of Doosan is definitely going to hurt the local manufacturers,” said
Sanjeev Zarbade, vice-president (private client group research), Kotak
Securities. Earlier this year, NTPC had invited bids for bulk supply of boilers
and turbine generators for four projects in three states — Karnataka, Orissa
and Chhattisgarh — with a total capacity of 7,200 MW. The price bids for the .
9,000-crore boiler tender were opened on Wednesday, while the tender for the
turbines is scheduled to be opened on Thursday.
Chinese, Korean and Russian companies are
leaders in supercritical technology, which has higher efficiency and lower
emissions than conventional technology. According to Central Electricity
Authority, about 60% of coal-based power projects in the 12th Plan period and
90% coal-based capacity in 13th Plan period are likely to be based on
supercritical technology. “This win would fructify Doosan’s plan of setting up
a manufacturing base in India. So the competition would continue to increase
and with order inflows drying, price war is imminent,” an analyst from a
foreign brokerage said.
Source: ET
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