SECTOR ANALYSIS: Boiler-Turbine-Generator industry

Mumbai : The outcome of NTPC’s second phase of its bulk tender (9 units of 800mw each) confirmed analysts’ fears of competitive pressures in boiler-turbine-generator (BTG) industry with stiff competition in the turbine-generator category. Second lowest bid (L2) in the TG portion of the order was very close to the lowest bid (L1) of about Rs 1 crore per mw.

The event also indicated that competition has intensified further given average price per mw quoted for TG in phase 2 being 30% lower than average bid quoted in phase 1 (11 units of 660mw each).