NTPC will release Rs 34000cr order by March end: BGR Energy

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NTPC will release Rs 34000cr order by March end: BGR Energy

BG Raghupathy, the CMD of BGR Energy tells CNBC-TV18 that because of land possession issues, NTPC had to defer the order but he is confident of it being released from NTPC before the end of March.

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The 34,000 crore NTPC order for supercritical boilers has been deferred. BGR Energy was L1 for Rs 3,600 crore turbine order from NTPC. The order was expected to be released from NTPC before March. The company bid for Rs 22,000 crore of projects.

BG Raghupathy, the chairman and managing director of BGR Energy tells CNBC-TV18 that because of land possession issues, NTPC had to defer the order but he is confident of it being released from NTPC before the end of March.

Below is an edited transcript. Watch the accompanying video for more.

Q: Can you confirm to us whether this huge order has indeed been delayed?

A: NTPC has to be in possession of the land and they have to have the expert appraisal committee meeting at the Ministry of Finance (MoF). For one project - Lara Super Thermal Power Project at Raigarh has been already completed and the land is also almost in possession so we are expecting the order to be released before the end of March.

In Darlipali we expect the order in the month of April. A small bit of land is to be acquired. Once that is over we expect NTPC to release it. So it is not going to be deferred, NTPC is going ahead with the placement of orders.

Q: NTPC is going ahead with the entire Rs 34,000 crore orders that they have and you will be hearing from them by the end of March?

A: Yes.

Q: There has been a slippage in order book. In fact even in this quarter's performance there has been a big dip on the net profit and for orders as well. Are there any more delays that you are seeing from the clients on the ground with the kind of orders that you have got?

A: The entire country's power sector has been slipping orders for the last 12 months, nobody got any big order. We got Rs 1,700 crore EPC job of 2x300 mw. Various projects are in the finalisation stage; one is in Rajasthan of 6,000 crore.

They have held discussion with BHEL and we expect to be called next and the 660 mw NTPC bulk tender - NTPC is awaiting for the court decision and we have bid for nearly Rs 22,000 crore of projects for BTG and EPC projects which is taking a little time which is usual but we expect these orders to come in within the next six months. As of today our order book is about Rs 8,500 crore and with the two orders that we expecting in the month of March and April we will be adding Rs 9,400 crore we will be adding to our order book.