The Apex court stayed the Rs5,000 crore tender of the country’s largest power producer NTPC for a cooling tower at its Nabinagar plant on the petition of Paharpur Cooling Towers.
The 4 X 250 mw thermal power project, coming up in Aurangabad district of Bihar, is a joint venture between Bhartiya Rail Bijlee Co Ltd, a subsidiary of NTPC, and the Indian Railways. Bhartiya Rail Bijlee holds 74% stake in the JV, while the rest is held by Indian Railways.
A bench of Justices Altamas Kabir and Cyriac Joseph stayed the tender — awarded to Lanco Infratech — till September 7. It also asked state-owned NTPC to file a reply on the allegations of Paharpur Cooling Towers that it was wrongly eliminated from the tendering process.
Bids for IDCT were invited in August 2008.
Earlier, Paharpur had moved the Delhi High Court, which dismissed its plea and imposed Rs13 lakh costs on it for waging an unnecessary litigation.
Paharpur’s lawyer Mukul Rohatagi said NTPC awarded the tender for Induced Draft Cooling Tower (IDCT) in violation of the terms and conditions of the tender agreement.
According to the conditions, the bidder must have experience in designing, constructing and commissioning of IDCT or any of their associate, who was participating in the bid.
However, Lanco was banking on Encon Services Ltd — recently amalgamated with Lanco — which had completed projects for Korea Heavy Industries and Construction Co Ltd. Moreover, it has got it designed from Shriram Tower Tech Ltd, its counsel said.
Rohtagi said the difference between the bids of Lanco and Paharpur was only Rs4 crore, and Paharpur was ready to supply at that price with its vast experience in the sector.
NTPC lawyer Vikas Singh contested his arguments saying Paharpur was just obstructing the plant.
“Paharapur was aware from January 2010 that they have been disqualified and kept waiting and approached the court a year later,†Singh, a former additional solicitor general like Rohtagi, said.
He said stay at this stage would delay the Nabinagar project.
However, the apex court said, “When you have waited for this tender from 2008 and you can wait for even some more time and stayed the projectâ€.
Lanco’s lawyer Jayant Bhushan also tried to persuade the court that the company be allowed to start the preparatory work for construction of IDCT.
“We would have to see first whether you have the required expertise or not. These are very critical and important power projects,†the court told him.
SC stays NTPC’s Rs5,000 cr cooling tower order to Lanco Infratech. He said stay at this stage would delay the Nabinagar project.
However, the apex court said, “When you have waited for this tender from 2008 and you can wait for even some more time and stayed the projectâ€.
Lanco’s lawyer Jayant Bhushan also tried to persuade the court that the company be allowed to start the preparatory work for construction of IDCT.
“We would have to see first whether you have the required expertise or not. These are very critical and important power projects,†the court told him.