The turnkey contract is valued at Rs1,633.71 crore. The contract price comes with a price variation clause whereby the company will be able to adjust the price based on movement of cost of raw material, equipment and labour with a ceiling of 15%.
The scope of BoP contract includes design, engineering, manufacturing, shop fabrication, assembly, inspection, testing, transportation, erection of equipment, civil works, structural works, commissioning and guarantee test for the 2 x 500 mw thermal power project.
This green field project will have features like ash dyke and intake water system from Hasdeo river. The Power Finance Corporation and the Chhattisgarh State Power Generation Company Limited fund the project.
The bidding for this project witnessed competition from seven companies, of which Larsen & Toubro, Tata Projects and BGR Energy were only qualified. BGR Energy emerged successful in the price bid. The companys current order book swelled over Rs 12,500 crore, which includes EPC (engineering, procurement and construction) and BoP contracts for power sector and LSTK contracts for oil & gas sector.
It may be recalled that the company has so far secured five contracts comprising six 500 mw units for supply of BoP equipment and civil works. The current order will be the BoP for seventh and eighth 500 mw units. Thus strengthening the companys market leadership position in BoP business segment.