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SC Quashes Ansaldo Bid for NTPC Contract

  • The apex court ruling is a blow to Ansaldo, which had won the case before the Delhi high court and managed to halt the financial bids of NTPC’s tender processState-run NTPC Ltd prevailed in a tender dispute with Ansaldo Caldaie Boilers India Pvt. Ltd, a unit of Italian boiler maker Ansaldo Caldaie S.p.A., on Thursday with the Supreme Court reasoning that the company had failed to technically qualify for the supply of so-called supercritical power generation equipment.
  • The apex court ruling is a blow to Ansaldo, which had won the case before the Delhi high court and managed to halt the financial bids of NTPC’s tender process. Supercritical equipment burns coal in a more efficient way thereby helping in lowering emissions.The Supreme Court said Ansaldo had submitted its bid using an Italian unit of Siemens AG to supply some parts of the technology in the steam generation process. The court said that this violated the tender rules and thereby disqualified Ansaldo.
  • With the Supreme Court’s verdict, the stalled award of supercritical power generation equipment that has been pending for around a year will resume.NTPC, India’s largest power generation utility, had initiated the bulk tender process to augment domestic power generation equipment manufacturing capacity that has been dominated by state-controlled Bharat Heavy Electricals Ltd (Bhel). NTPC has been unable to place a single order since 2009 because of the legal dispute over 660MW size units and problems in land acquisition for 800MW size units.

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