NTPC,BHEL to bid for UMPPs

New Delhi: The 50:50 joint venture between state-run power generator NTPC and power equipment manufacturer Bharat Heavy Electricals (BHEL) is likely to bid for future ultra mega power projects once the joint venture is registered by month-end.

“It is likely that the joint venture will bid for future ultra mega power plants,” said a senior NTPC official, adding that the joint venture would compete with the promoter company.

NTPC Chairman and Managing Director T Sankaralingam said the joint venture had already identified two projects in India. He, however, did not disclose the names of the projects or the investments that are likely to be made.

NTPC and BHEL decided to form a joint venture last September to execute power sector projects in India and abroad.

Earlier, there was friction between the two companies over a deal. NTPC blamed BHEL for delay in equipment supply while BHEL held that NTPC did not place the order on time.

There were also reports that NTPC would begin manufacturing power equipment after the near fallout. “It is much better if the two companies work together, leveraging individual competencies,” said another NTPC official.

Sankaralingam said that once the joint venture is registered, the company would also consider taking in a technology partner, which could also be a foreign firm.

Meanwhile, NTPC is also carrying out feasibility studies for setting up a 700 mw power plant in Nigeria. The company had promised to set up power plants in the hydrocarbon-rich African country in exchange for liquefied natural gas (LNG). NTPC requires gas to fire its power plants in India.

“We are in talks with the new government. Things should be ready in another six months,” Sankaralingam said.

Chandan Roy, director (operations), NTPC, said the company was also in talks with other countries in West Asia and Africa for a similar alliance.