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Snubbing Bidding Process May Deter Private Player

News:

Power equipment manufacturers have complained to the government of anomalies in awarding engineering, procurement and construction (EPC) contracts as a demand shortfall continues to hobble the sector.
Source: Business Standard

SNP Insights:

Nominating BHEL for EPC contract without going through the bidding procedure is likely to hit the private players adversely in this subdue demand of power equipment. This may reduce the chance of recovery of fixed cost of the stranded capacity which almost on the verge of increasing non performing asset of the bank unless tap the foreign market.
Source: SNP Infra Research

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