Court declines Larsen and Toubro’s plea to stay bidding

New Delhi, Sep 14 (Calcutta Tube) The Delhi High Court Tuesday declined the plea of Larsen and Toubro Power to stay the bidding by state-owned National Thermal Power Corporation for the Rs.25,000 crore power equipment tender.

‘We are not inclined to pass any interim relief in favour of L&T,’ the court said while refusing to intervene in the bidding process. The company had dragged the NTPC to the court after it disqualified L&T Power’s bid in the Rs.25,000 crore bulk tender, citing technical irregularities.

The NTPC had issued tender for bulk ordering of supercritical power equipment for 7,200 MW projects, with a pre-condition that the bidder should have manufacturing facility in India in order to promote domestic companies.

The firm was disqualified by the NTPC for supplying boilers and turbines on the ground that the technology collaboration agreement for equipments was between its parent company (L&T) and Mitsubishi Industries Ltd, and not directly with L&T Power itself.

The NTPC said it had to scrap the tender and call for fresh bids after L&T Power’s disqualification because the Bharat Heavy Electricals Limited (BHEL) was the sole bidder left for the project.

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