ABB-Alsthom Power may not bid for Kawas and Gandhar if NTPC decides to invite fresh tenders. Even though NTPC has not given any indication on retendering, ABB-Alsthom Power president Claude Dermon told Business Standard that rebidding will definitely result in higher prices as the market has undergone a complete change since last year.
NTPC is now considering fresh tenders despite the ministry's insistence on price negotiations.
Dermon also alleged the lack of a level playing field during the tendering process.He added that ABB-Alsthom Power had asked the government to waiver the 10 per cent price preference or reduce it to 5 per cent to ensure a level playing field to private equipment suppliers.
The protection has prevented ABB-Alsthom from getting major equipment contracts, and one of its subsidiaries ABL Ltd's Durgapur and Shahbad plants were operating at 40 per cent capacity due to lack of contracts.
He said the company has, at present, frozen all fresh investments in India and is planning a restructuring, including the revamp of ABL Ltd. "If things do not improve, we will be forced to review our operations here," he said, noting, "We are as much an Indian company as Bhel is since we have been operating in this country for a number of years."
