Jul 28, 2017 11:18 AM IST | Source: CNBC-TV18

NTPC orders could be profitable if bid cautiously, says Unnikrishanan of Thermax

With the power sector starved for new orders; the fresh orders to be floated by National Thermal Power Corporation Ltd (NTPC) to meet the environmental norms can send a ray of hope for auxiliary infrastructure companies like Thermax and BHEL.

MS Unnikrishnan, MD, Thermax in an interview with CNBC-TV18 evaluates this opportunity for the company and the sector as a whole.

He said NPTC will likely put out bulk orders basically for implementation of the stricter environmental norms, especially desulphurisaton.

According to analysts, NTPC has invited bids to install Flue Gas Desulphurisation in thermal plants. However, the tenders are yet to be floated out but the company is aware of the tenders coming out and also aware for which locations they are going to come for.

However, these are for plants which have been commissioned before March 2016 and for those that will follow the older norms. The newer plants have to follow tougher norms but most of NTPC new plans are compliant, he said, adding that only a few NTPC plants will need to overhaul to meet the environment norms.

He said around 19 companies have bid for pre-qualification of NTPC order but one company cannot take more than 3 orders from NTPC.

With 19 companies bidding, the competition will be high but Unnikrishnan said the company will still market profits if bid cautiously.

The potential order opportunity is likely to be around Rs 18000 crore. However, this opportunity will not be for one tender, said Unnikrishnan.

Other private players like Tata's, Adani's ADAG Group will also have to follow the norms.

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