Chennai: In a setback to the ongoing 1,600 MW super critical coal-based Uppur Thermal Power Project in Ramanathapuram, Tamil Nadu Generation and Distribution Corporation (Tangedco) has decided to reject the bid made by Bhel to execute the balance of plant (BOP) package and other allied services as it failed to quote for the entire scope of work mentioned in the bid specification.
The decision to reject Bhel bid for BOP package of Uppur project was taken at Tangedco's recent board meeting. “The price bid submitted by Bhel will be returned unopened,” said Tangedco sources.
“We are going to call for fresh tenders with some modification in the BOP package,” an official said. The Sea Water Intake and Outfall System would be excluded from BOP package of UTPP, the official said adding that two separate tenders — for BOP package and allied civil works related to BOP and Sea Water Intake and Outfall System - would be floated.
Tangedco had floated the bids for the Uppur project in two package - Boilers, Turbine and Generator (BTG) and BOP following the Central Electricity Authority's guidelines for better Project Management and also for effecting reduction in project cost. The engineering, procurement and construction (EPC) contract for BTG package of the Uppur project was awarded to BHEL at a cost of Rs 5,580 crore on February 27 this year. The two 800 MW super critical units would be commissioned by Sept. 2019 had the work progressed as per schedule.
The overall cost of the project is estimated to be at Rs 12,778 crore. The mode of execution of the Uppur project has been witnessing several changes. Initially, Tangedco planned to execute the project through “Tariff based competitive bidding route” where developers quoting the lowest average electricity tariffs for the proposed project get to set it up. However, the discom had a change of mind in February last year and decided to execute the project under state sector through EPC contract. In June last year, Tangedco decided to implement the project under two EPC packages - BTG and BOP instead of single EPC contract.