November 22, 2008

L&T outbids BHEL for AP power project

ET reported that Larson & Toubro has outbid BHEL for supply of main power equipment for a proposed 1,600 MW power project in Andhra Pradesh.

As per report, against a bid of about INR 2,000 crore placed by BHEL, L&T bid just over INR 1,500 crore.

The project being developed by Andhra Pradesh Generation Corporation at Krishnapatnam would be the first project in India based on 800 MW supercritical thermal generation sets. The total cost of Krishnapatnam project is about INR 8,000 crore.

Mr Jairam Ramesh union minister of state for power said that "The Krishnapatnam project would be the first contract given to a non BHEL domestic manufacturing company. It is a very significant development that would kick start L&T’s own power equipment manufacturing program. India needs to step up manufacturing to keep pace with its ambitious capacity addition program and an additional domestic manufacturer here would definitely help."