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Vandana Saxena
Mumbai, Sept 18: Asea Brown Boveri (ABB) is likely to be out of the race as an equipment supplier for phase II of the Dabhol power project. General Electric (GE), one of the promoters in the project, will continue to be the supplier.
It is believed that ABB, whose bid was the lowest followed by GE, lost out on parameters like performance guarantee and guarantee on spares, which were not agreeable to the promoters. Dabhol Power Company (DPC) is promoted by Enron Corporation which holds 80 per cent, while the balance is equally shared by GE and Bechtel.
The contract was to be awarded after seeking the Maharashtra State Electricity Board's (MSEB) approval. The board has also reiterated its stand of picking a 30 per cent stake in the project for which it is raising funds through bonds.
MSEB's greater involvement in the selection of an equipment supplier was sought by the "renegotiating committee," which was set up by the Sena-BJP government. The government had earlier scrapped the project which was awardedby the previous Congress government.
The committee gave the go-ahead to both phases after certain pre-conditions. One of the requisites was that DPC will select the equipment supplier through competitive bidding. The argument was that Indian companies will get an opportunity to compete and the use of local equipment will help in saving costs.
The faction opposing the project had sought renegotiations, but dismissed the conditions as an eyewash. They felt that GE will eventually bag the contract being an equity holder and which may not continue in this position otherwise. Incidentally, none of the local companies bid for the contract.
DPC had invited bids for equipment vendors in April last year. Some of the plant equipment required through the process includes four combustion turbines and generators, two steam turbines and generators, and four horizontal natural-circulation boilers, water-treatment plant and cooling towers.
The power company, which expects to commission the 740mw phase I of theproject by December, is working on the financial closure of Phase II.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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