Companies

NTPC annuls Rs 700-cr deal with Ansaldo

PTI New Delhi | Updated on November 18, 2013

State-run NTPC has terminated its Rs 700-crore contract with the Italian company Ansaldo for sourcing turbines for its gas-based plant at Dadri in Uttar Pradesh.

“NTPC has eliminated its previous contract with Ansaldo, a group company of Finmeccanica,” sources said.

Finmeccanica is also the parent company of AgustaWestland, which is facing probe after bribery charges were levelled against it in the Rs 3,600-crore helicopter deal with India.

According to sources, the company wants to play safe and does not want to get into any controversy and therefore has decided to annul the contract.

The tender, which was floated under the company’s R&M (renovation and modernisation) programme, was terminated after seeking legal opinion.

The bids were invited last year and Ansaldo emerged as the lowest bidder for the contract.

NTPC’s Dadri plant is a Rs 960.35-crore gas-based power project that supplies electricity to Uttar Pradesh, Uttarakhand, Rajasthan, Delhi, Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir and Chandigarh. The plant also supplies power to railways.

The company is also operating a 1,820-MW coal-based plant at the same location. However, whether the company will issue a fresh tender for the same contract could not be ascertained.

Shares of NTPC were trading at Rs 155.35, up 1.77 per cent on the BSE.

Published on November 18, 2013

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like