Sipat bidding may be over by April

After a delay of almost three years, contracts are likely to be awarded for the first stage of the 2,980 mega-watt Sipat project of the National Thermal Power Corporation by April-end.

Marubeni Corporation of Japan and Power Machines of Russia are in the race for the Rs 1,140 crore turbine generator package, while Doosan of South Korea and another Russian manufacturer are in the fray for the Rs 1,860 crore steam turbine package.

Sipat is a landmark project, being the first power project in the country to be executed using the energy efficient 660 MW super critical technology. The largest power plants in the country have installed 500 mega-watt sets.

Bidding for the project was delayed by almost three years to ensure the participation of state-owned Bharat Heavy Electricals Ltd (Bhel), which did not have the requisite boiler technology to participate in the tender process.

Bhel, which later tied up with Alstom for the super critical boiler technology, did not bid for the project ultimately. The bidding schedule of the Sipat project has been pushed back seven times since bids were first called in June 2001.

NTPC did not receive any bids for the first phase of the project till the expiry of the earlier deadline of March 28, 2003. Consequently, the company reverted back to the 500 mega-watt technology for the second phase of the Sipat project, which was originally scheduled to be executed using the 660 mega-watt technology.

The lack of response from equipment suppliers had led NTPC to reduce the four 660 mega-watt units planned in the first phase to three 660 mega-watt units now.

However, instead of having one 660 mega-watt unit in the second phase, the company board decided to have two 500 mega-watt units and simultaneous bids were floated for one 660 mega-watt and one 500 mega-watt unit.

In light of the delay in the Sipat project, NTPC had already reverted back to the 500 mega-watt technology for the second stage of the Kahalgaon project, which was initially scheduled to be implemented on the 660 mega-watt super critical format.

According to power ministry officials, the energy efficient 660 mega-watt technology is deemed as the technology of the future. Despite Kahalgaon reverting to the 500 mega-watt technology, NTPC's Barh super thermal project and the North Karanpura project will be executed using the 660 mega-watt critical boiler technology, officials said.

Power project

• Sipat is the first power project in the country to be executed using the energy efficient 660 mega-watt super critical boiler technology
• Bidding for the project was delayed by almost three years to ensure the participation of state-owned Bhel
• Bids for the project were first invited in June 2001