Supreme Court upholds BHEL's Rs 400 cr Ash Handling Plant Contract with BTL EPC

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Supreme Court upholds BHEL's Rs 400 cr Ash Handling Plant Contract with BTL EPC

Supreme Court upholds BHEL's Rs 400 cr Ash Handling Plant Contract with BTL EPC

Industry News
Sep 20,23

This decision was made in conjunction with a consortium agreement involving the Chinese company Fujian Longking Co.

Supreme Court upholds BHEL's Rs 400 cr Ash Handling Plant Contract with BTL EPC

The Supreme Court upheld Bharat Heavy Electricals Ltd's decision to grant an Rs 400-crore contract for the construction of an ash handling plant to Kolkata-based BTL EPC Ltd. This decision was made in conjunction with a consortium agreement involving the Chinese company Fujian Longking Co.

Chief Justice D Y Chandrachud led the bench that set aside the Karnataka High Court's August ruling, which had previously invalidated the BHEL tender awarded to BTL in September 2022. The Supreme Court asserted that substantial progress had been made on the project, and the High Court's order would impede the contract's implementation.

The High Court had annulled the tender, emphasising that national security took precedence over public interest. It had directed BHEL to consider the bid from another Noida-based contender, Macawber Beekay, for an ash handling plant as part of the installation of the 4000 MW thermal power station by the Telangana State Power Generation Company at Yadadri in Nalagunda district.

Macawber Beekay had alleged that BTL EPC failed to meet the technical requirements of the contract by partnering with the Chinese firm Fujian Longking, contrary to the Indian government's restrictions on bidders from countries sharing land borders with India. However, the Supreme Court rejected Macawber Beekay's argument, stating that BHEL itself was responsible for determining eligibility. The Government of India had not identified any violations, as the Finance Ministry clarified in 2021 that its previous office memorandum would not affect the procurement of goods and services.

The High Court remarked in its judgment, "Considering the nature of the transaction and the work to be performed by BTL and Fujian Longking, as well as the mandatory requirement of registration with the competent authority (as per the Finance Ministry's order of July 23, 2020) not being met, a mere claim of adverse effects on public interest cannot outweigh national interest."

BTL, BHEL, and the Telangana State Power Generation Company filed a petition with the Supreme Court, arguing that the High Court's interference with the tender award at this stage was against public interest and would result in significant delays. They contended that BTL EPC had already completed substantial work on the project, and the first 800 MW unit was scheduled for commissioning in December.

Source: Indiatimes