Subject: Technology Collaboration for Gas Turbine and its auxiliaries of a 1.5 MW (ISO) rating, suitable for marine (defence) application.

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1 Subject: Technology Collaboration for Gas Turbine and its auxiliaries of a 1.5 MW (ISO) rating, suitable for marine (defence) application. 1) Introduction This Expression of Interest (EoI) seeks response from Original Equipment Manufacturers (OEMs), who are willing to be associated with BHEL through a license & technology collaboration agreement on long term basis, to enable BHEL to Engineer, Manufacture, Assemble, Test, Supply, Field Install, Commission, Repair, Service and Retrofit 1.5 MW (ISO) rating Gas Turbine and its auxiliaries. The Gas Turbine should be suitable for marine (defence) application. 1.1) About Bharat Heavy Electricals Limited (BHEL) BHEL is a leading state owned company, wherein Government of India is holding 63.06% of its equity. BHEL is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing organization in India, catering to the core infrastructure sectors of Indian economy viz. energy, transportation, heavy engineering industry, defence, renewable and non-conventional energy. The energy sector covers generation, transmission and distribution equipment for hydro, thermal, nuclear and solar photo voltaic. BHEL has been in this business for more than 50 years and BHEL supplied equipment account for more than 57 % of the total thermal generating capacity in India. BHEL is also listed in stock exchanges of India. The company has 17 manufacturing units, 4 power sector regions, 8 service centers, 8 overseas offices and 15 regional offices besides host of project sites spread all over India and abroad. The annual turnover of BHEL for the year was US$ 5.04 Billion*, with profit before tax of US$ 349 Million*. BHEL s highly skilled and committed manpower of approximately employees, the state of art manufacturing facilities and latest technologies, has helped BHEL to deliver a consistent track record of performance. To position leading state owned companies as Global Industrial giant & as a recognition for their exemplary performance, Government of India categorized BHEL as Maharatna Company in 2013, empowering the company with enhanced autonomy in decision making. With the current order book exceeding US $ 16.1 Billion*, BHEL is poised for excellent future growth. Our ongoing major technology tie-ups include agreements with GE, USA (for Gas Turbines); Siemens, Germany (for Steam Turbines, Generators and Condensers); Metso Automation Inc., Finland (for Control & Instrumentation); Alstom, France (for Super-Critical Boilers & Pulverisers); MHI, Japan (for Pumps); MHPS, Japan (for Flue Gas Desulfurization Systems); Vogt Power International, USA (for HRSG); GENP, Italy (for Compressors); Turbo Lufttechnik, Germany (for Fans) and Sheffield Forge Masters International, UK (for Forgings). More details about the entire range of BHEL s products and operations can be obtained by visiting our web site 1.2) About Heavy Power Equipment Plant (HPEP) of BHEL: HPEP is one of the major manufacturing plants of BHEL located at R.C Puram, Hyderabad. This unit was started in the year 1965 for manufacturing of Steam Turbine and Generator sets up to 110 MW for state electricity boards and then diversified in to the areas of manufacturing Gas Turbines, Pumps, Heat Exchangers, Switch gears, Pulverisers and Oil rigs. Over the years, HPEP Hyderabad has consolidated its products in Indian and overseas market. [*Note: Currency conversion rate considered: 1 US $=Rs as on 31st March 2015] Page 1 of 6

2 1.3) Experience of Gas Turbine manufacturing: BHEL has been manufacturing heavy duty Gas Turbines since 1986 under a Technical Assistance and Licensing Agreement (TALA) with M/s General Electric, USA. Under this technology tie up, BHEL has successfully established manufacturing of various models of Gas Turbines ranging from 25 MW to 297 MW and has supplied over 230 units to various customers in India and abroad. BHEL also manufactures rotors, combustion and Hot Gas Path (HGP) components of these Gas Turbines for the aftermarket. 2) Scope of cooperation : BHEL presently is seeking Expression of Interest (EoI) from reputed OEMs for technology collaboration on a long term basis for manufacturing of the 1.5 MW Gas Turbine and its auxiliaries at BHEL. BHEL envisages good potential for these Gas Turbines in the Indian Market. There is a likely hood of a tie up with certain end customers in India for long term sourcing of these Gas Turbines manufactured by BHEL on an exclusive basis. At present, opportunities for the GTs exist in the marine (defence) application which predominantly envisage operation of the Gas Turbine in open cycle mode. There could be opportunities in the future for use of these Gas Turbines in other segments as well. BHEL intends to manufacture these Gas Turbines under a long term technology collaboration agreement with transfer of technology. Interested Gas Turbines OEMs with proven models in the specified ranges are invited to respond to this EoI. Upon receipt of responses against EoI from OEMs, BHEL will review the responses to ascertain suitability of the offered Gas Turbine for the intended application and shortlist the OEMs in consultation with end customer for further discussions. Detailed discussions on commercial and other terms and conditions to finalise the Technology Collaboration Agreement shall be held with shortlisted OEMs/Prospective Collaborators. Business sharing option during the initial period of technology assimilation by BHEL can also be considered. 3) Brief Description of EoI Process: The interested Prospective Collaborators shall ensure that their response along with annexures are received by BHEL on or before The response shall necessarily be accompanied with details on company background, product profile, Gas Turbine model proposed along with its technical details, fleet information in operation, reference list of customers using the proposed model of Gas Turbine, list of approvals / conformance certificates that provide proof of the proposed model being suitable for marine (defence) application, product data sheet and annual audited financial reports for last 3 (three) years including auditor s report. In case any further information is needed, kindly feel free to contact us. The respondent shall submit their offer with all annexures duly signed. Your response may be sent to the following address: Page 2 of 6

3 General Manager Technology Licensing & Joint Ventures Bharat Heavy Electricals Limited BHEL House, Siri Fort New Delhi , India Phone: Mobile: Fax: Expression of Interest (EoI) for Gas Turbine 4) Miscellaneous: 4.1 Right to accept or reject any or all Applications: Notwithstanding anything contained in this EoI, BHEL reserves the right to accept or reject any Application and to annul the EoI Process and reject all Applications at any time without any liability or any obligation for such acceptance, rejection or annulment and without assigning any reasons therefore. In the event that BHEL rejects or annuls all the Applications, it may, at its discretion, invite all eligible OEMs/Suppliers to submit fresh Applications BHEL reserves the right to reject any Applicant during or after completion of EoI process, if it is found there was a material misrepresentation by any such Applicant or the Applicant fails to provide, within the specified time, supplemental information sought by BHEL BHEL reserves the right to verify all statements, information and documents submitted by the Applicant in response to the EoI. Any such verification or lack of such verification by BHEL shall not relieve the Applicant of his obligations or liabilities hereunder nor will it affect any rights of BHEL. 4.2 Governing Laws & Jurisdiction The EoI process shall be governed by, and construed in accordance with, the laws of India and the Courts at New Delhi (India) shall have exclusive jurisdiction over all disputes arising under, pursuant to and/ or in connection with the EoI process Page 3 of 6

4 Annexure-1 Indicative technical features of Gas Turbines for which Transfer of Technology is sought a) Construction features of the Gas Turbine should be suitable for the marine (defence) application. b) The Rating of the Gas Turbine should be in range of 1.5±0.5 MW (ISO rating). (Gas Turbine Models upto 2.5 MW also could be considered in consultation with end customer, if it can be accommodated in the available envelope). c) Time Between Overhauls (TBO) should be greater than 20,000 Hrs. (Hot gas path components should have a repair / replace interval in excess of 20,000 Hrs). d) Considering the Gas Turbine is expected to operate in open cycle mode, efficiency of the engine should be best in class. A minimum of 24% efficiency is expected. e) The dimensions of the Gas Turbine Generator (GTG) train are desired to be within 5800 mm length, 1800 mm width and 1800 mm height. (The Gas Turbine air intake, exhaust and other auxiliaries not included). f) The Gas Turbine should be capable of combusting Low Sulphur High Speed Diesel as fuel. g) The Gas Turbine should be of proven design with the fleet leader having completed at least hrs. h) OEM should have capability of providing On-site maintenance of Combustion & Hot Gas Path components. i) Gas Turbine exhaust temperatures should be lower than 465 deg C. With or Without Temperature suppression systems. j) Gas Turbines with efficiency improvement systems like regenerative cycles can also be considered, however reliability of operation shall need to be ensured. k) The engine should primarily be suitable for power generation application. (SIGNATURE) Page 4 of 6

5 Annexure -2 Prospective Collaborator's Experience in the field of 1.5 MW (ISO) rating Gas Turbines Sl. No. Requirement Prospective Collaborator s response YES/NO and remarks, if any (a) Whether the Prospective Collaborator is an Original Equipment Manufacturer (OEM) of proposed Gas Turbine (b) (c) (d) (e) (f) (g) (h) (i) Whether the Prospective Collaborator has an experience in engineering, manufacturing, assembly, testing, supplying, field Install, commissioning, repairing, servicing and retrofitting of subject Gas Turbine Whether company background, product profile, Gas Turbine model proposed along with its technical details, fleet information in operation, reference list of customers using the proposed model of Gas Turbine, list of approvals / conformance certificates that provide proof of the proposed model being suitable for marine (defence) application, product data sheet and annual audited financial reports for last 3 (three) years including auditor s report enclosed Whether information on market share has been enclosed Whether Prospective Collaborator s detailed reference list have been enclosed Whether Prospective Collaborator s annual audited financial reports for last 3 years have been enclosed Whether the Gas Turbine offered for technology transfer is the latest being marketed by the Prospective Collaborator Whether customers (end users) letters / documentary evidence for satisfactory operation of Gas Turbine model which is being offered to BHEL under this EoI have been enclosed Whether the Prospective Collaborator owns the IPRs for the technology being proposed for transfer under the Technology Collaboration Agreement (TCA) or have an unencumbered right from the owner of the IPRs to sub-license the technology, if applicable. If yes, whether list of such IPRs is enclosed. (SIGNATURE) Page 5 of 6

6 Annexure -3 Reference List: The Prospective Collaborator shall furnish a summary of their product reference as detailed below for major supplies in last 10 years Sl. No. Project name / location Rating of Gas Turbine Year of Supply Year of Commissioning (SIGNATURE) Page 6 of 6

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