TurbineNTPC and BHEL have different views with regards to boiler turbine package to NTPC/BHEL Power Projects Private Limited (NBPPL) for 500 MW Unchahar Stage IV thermal power plant. At the meeting taken by heavy industry secretary and power secretary to discuss the implementation of business plan of NBPPL, it was noted that that NTPC Board has approved the placement of Unchahaar EPC order on NBPPL on nomination basis with a condition to tender for BTG.

On this, BHEL CMD B. Prasada Rao stated that BHEL Board has taken a policy decision for the placement of order on its Joint Venture and subsidiary companies on nomination basis. In the light of this, stipulation of a condition by NTPC asking the JV to float tender for BTG in Unchahhar project instead of placing the order on nomination basis, does not appear to be justified.

Commenting on this, NTPC CMD Arup Roy Choudhury said that it was a decision taken by NTPC Board. EPC order is being placed on NBPPL on nomination basis as agreed to in the PMO meeting earlier. However, NBPPL in its own interest should go for tendering for BTG in order to establish and strengthen its credentials and qualify for future EPC Projects. Further, NTPC being a separate business entity has to do business at arms’ length with NBPPL, though a JV company of NTPC, he stated.

The heavy industry secretary asked NTPC and BHEL to resolve the issue through discussions.

NTPC’s Feroz Gandhi Unchahar project consists of five units of 210 MW each. The utility has now proposed to augment the capacity by developing 500 MW unit as Stage IV of the project. The project has recently been accorded environment clearance by the environment ministry.

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