• Power ministry extends domestic manufacturing rule by 3 years

    The Ministry of Power has extended by three years a clause whereby companies inviting bids for boilers and turbine generators of supercritical projects need to incorporate a condition of setting up of phased indigenous manufacturing facilities.

    The period of advisory had expired on October 2015 and the ministry has now extended it by three more years with minor changes in the guidelines, Central Electricity Authority said in a report.

    The advisory said, for a foreign bidder, the company should have a registered subsidiary or a joint venture (JV) company for manufacturing of super critical boilers or turbine in India.

    It further said the bidder in this case must maintain an equity participation of minimum 51 per cent in the subsidiary or minimum 26 per cent in the JV company during the lock-in period of seven years.

    For an Indian company, it has to have an experience of 500 Megawatt supercritical boiler or turbine and it should have a valid ongoing collaboration and technology transfer agreement, the document said.

    “Major part (minimum 75 per cent) of the land required for setting up the manufacturing facility should be in possession with clear title, prior to submission of bid in the name if the subsidiary/JV company,” CEA said. Shannon Sharpe Jersey

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