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Web Exclusive | July 2017

BHEL wins 2,400 MW project

In a surprise win, PSU giant BHEL has emerged the lowest bidder in the tender to build a 2,400 MW joint NTPC-Jharkhand government plant, beating Larsen & Toubro and Korea's Doosan. Estimated at around Rs 14,000 crore, it included EPC of 3x800 MW coal-fired plant and the Patratu Thermal Power Station. However, according to sources, the PSU is slated to win it with the lowest bid of Rs 11,628 crore. BHEL’s bid was astonishing, especially given that steel prices have gone up almost 20 per cent in the last two quarters and the project also includes air pollution control system, making it expensive. Thus, while the low bid will benefit NTPC, some industry executives raised concerns over BHEL's ability to execute the project at such low margins.
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