New Delhi, Aug 10: State-run National Thermal Power Corp's tender for sourcing 3 million tonnes of gas per year to fire expansion of its power plants at Kawas and Gandhar, has raised questions from several bidders who say the contract terms were unworkable. Almost all the nine bidders in fray including BG group of UK, Royal/Dutch Shell, total of France, Oman LNG, Yemen LNG, Unocal, Petronas of Malaysia, Petronet LNG and Reliance Industries, have expressed disappointment at the contract terms even after NTPC made some 200 amendments to the previous draft contract.

Industry sources say the tender conditions are heavily loaded against the supplier and bidders were likely to put in reservations to several clauses in the technical and price bid called in September. Already, Ras Laffan Liquefied Natural Gas Co Ltd (RASGAS) of Qatar has quit the bid process. The firm on July 22 wrote to NTPC that its "terms and conditions are unrealistic, not balanced and non-commercial" and do not support the large investments necessary to assure timely, secure supplies of LNG.

Bidders have voiced reservations to as many as 48 clauses including termination conditions, bid security, fixed price quote for gas, most favoured customer status and lack of confidentiality clause.

Sources said bidders were likely to submit amendments to the draft contract in dozens and may seek an extension of the September deadline for submission of the bids to incorporate many of their concerns. Bureau Report