SC permits NTPC’s appeal against Italian Company

This month govt. might be seemed to put major attention on business sector and does not allow any illegal threat over it.

Yesterday, the Supreme Court disqualified and officially declared invalid the decision took by Delhi High Court over permitting Italian Company to bid for power equipment.

While NTPC had invited bids for supply and installation of Steam Generator package, the super-critical power equipment, for run coal-based thermal power projects across the country.

While Italian boiler manufacturer Ansaldo Caldaie Boilers (ACB) applied for bid, NTPC, following international competitive bidding procedures had dismissed the bid of ACB, on January 5, 2011, due to lacking of minimum qualifying requirements that set out in the bid documents.

On basis of eligibility criteria mentioned by NTPC, the bidder should be design and engineer the entire Steam Generator itself, not to be outsourced. But Ansaldo’s bid had disqualified on the technical grounds.

ACB had challenged its disqualification before the Delhi High Court. Delhi high court had made decision in favor of ACB by notifying that all integral parts of the Steam Generator like the furnace, evaporator, superheaters, reheaters, connecting piping etc. were also to be designed and engineered by the manufacturer itself.

And on basis of fully required eligibility, it allowed Italian boiler manufacturer to bid for providing equipment to state-run power major NTPC.

NTPC refused to accept and had filed a petition in Supreme Court against PSU’s decision.

As a result, the apex Supreme Court, a bench of justices allowed the petition filed by NTPC and upheld the PSU’s decision disqualifying the Italian manufacturer and its Indian partner Gammon India from participating in the around 16,000-crore tender for power equipment.

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