November 22, 2008

BGR Energy beats BHEL to bag TNEB order

It is reported that Chennai based BGR Energy Systems Limited has won an INR 3,100 crore engineering, procurement, construction contract from Tamil Nadu Electricity Board for building a single unit of 600 MW coal based power project at Mettur in Tamil Nadu.

BGR Energy has won the contract over Bharat Heavy Electricals Limited, which was the only other bidder in the international tender. The balance of plant will be produced in house by BGR Energy. The project includes the installation of a gas insulated substation, which will also be imported.

Mr BG Raghupathy CMD of BGR Energy said that the value of materials and services provided in house is about INR 1,500 crore.

The project is to be commissioned within 39 months, with penalties for delay, but no incentives for earlier production.

With this order, BGR Energy’s order book doubles to INR 6,000 crore, which includes 4 balance of plant contracts and various jobs in oil and gas sector.