HC quashes NTPC rejection of Gammon unit’s bid

NEW DELHI: The Delhi High Court on Tuesday ruled against NTPC’s decision to disqualify Ansaldo Caldaie India from tendering for an equipment supply contract. It said based on the tender documents, NTPC could not exclude Ansaldo , a subsidiary of Gammon India, from the tendering process.

“Consequently, NTPC will allow the writ petitioner (Ansaldo Caldaie India), in accordance with the terms of the bid documents, not only to proceed to the next stage ie, stage-II (price bid), but also permit it to participate in the technical discussions of the tendering process,” the court said in its judgment. An NTPC official said the company was “studying the judgment and would take a call that would be in its best interest”.

The bidding process for bulk contract for supply of 11 sets of 660-MW boilers is on hold. The state-run utility had disqualified Ansaldo, saying it did not have competence in supplying evaporator (water wall) - a critical component in boilers.

This was challenged in court by Ansaldo, which said supplying self-designed evaporators was not mentioned as qualifying criteria in NTPC’s notice inviting tenders.

“We are happy that justice has been done and we are sure that we will place the most competitive bids,” a senior official of Ansaldo said. Bharat Heavy Electricals Ltd, Larsen & Toubro and BGR Energy had qualified in the first phase of bidding. The court, however, said there was no evidence that NTPC acted in a mala fide manner at the behest of competitors’ of Ansaldo Caldaie India.

But added, “We are in the age of commercial espionage, it cannot be ruled out that information flowed to the competitor from an insider.” Ansaldo has accused T Sankaralingam, managing director of BGR Energy and NTPC’s former chairman, of using influence to get the Gammon India subsidiary out of the race. Sankaralingam has served a legal notice to Ansaldo for “character assassination”.