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Global giants in race for Dabhol equipment supply
Vandana Saxena
MUMBAI, July 16: General Electric, GEC Alsthom, Siemens, Asea Brown Boveri (ABB), Mitsubishi Heavy Industries, Westing House, Kirloskars, Mather & Platt and Sulzer India are in the race to bag the contract for supplying equipment for the second phase of the Dabhol power project. Larsen & Toubro is a significant omission in this list. The 1,624 mw phase II project is expected to kick off by 1999. Contractors for the first phase of 826 mw are General Electric and Bechtel, who hold 10 per cent each in the project. DPC will shortly make its selection for the second phase and the companies will be asked to submit their financial bids. Company officials said the response was "overwhelming." The selection of this qualification round will be finalised in a month. The move to invite open tenders for equipment, procurement and construction (EPC) work follows the recommendations of the committee set up to renegotiate the project. The group felt that the EPC contract value could be reduced if selection was made through competitive tenders. It, hence, recommended inviting tenders for the second phase of the project. The committee felt that this would give Indian companies an opportunity to participate. Using indigenous equipment would also contribute to bringing down costs. The selection process is being carried out in consultation with the Maharashtra State Electricity Board (MSEB) which plans to pick up 30 per cent equity in the project. DPC had sought information from the equipment suppliers in various categories including power island equipment (combustion turbine and generators, heat recovery boilers, steam turbines and generators), water treatment plant, step up transformers, cooling towers, cooling water circulation pumps, condensors, boiler feed water pumps and sub-station equipment equipment. The company requires four combustion turbines and generators, two steam turbines and generators and four boilers. Dabhol Power is jointly promoted by the US-based Enron Development Corporation, Bechtel Enterprises and the General Electric Company. Currently, Enron holds the majority stake of 80 per cent and will subsequently offload 30 per cent to MSEB. Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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