Expression of Interest (EoI) for - Bharat Heavy Electricals of Glass Insulators- Extension of due...

Expression of Interest (EoI) for Technology Collaboration Agreement (TCA)

for Glass Insulators for Power Transmission

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Subject: Technology Collaboration for Glass Insulators

1) Introduction:

This Expression of Interest (EoI) seeks response from Original Equipment Manufacturers (OEMs), who are willing to associate with Bharat Heavy Electricals Ltd., (BHEL) through a Technology Collaboration Agreement (TCA) on long term basis, to enable BHEL to design, engineer, manufacture, assemble, quality control, product test, supply and in service testing of Glass Insulators up to 320 kN Rating for 765 kV HVAC Transmission Lines.

1.1) Bharat Heavy Electricals Limited (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 2014-15 was US$ 5.04 Billion*, with profit before tax of US$ 349 Million*. BHEL’s highly skilled and committed manpower of approximately 44900 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 Super-Critical Boilers & pulverisers and Gas Turbines); Siemens, Germany (for Steam Turbines, Generators and Condensers); Metso Automation Inc., Finland (for Control & Instrumentation); 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 www.bhel.com. At present, BHEL manufactures Porcelain Disc Insulators at its state of the art manufacturing facilities located at Bengaluru, Karnataka, India and Jagdishpur, Uttar Pradesh, India. BHEL also manufactures High tension Insulators, ceramic wear resistant liners, Industrial ceramic products, LT Switchgear panels, composite insulators and associated systems at these facilities.

[*Note: Currency conversion rate considered: 1 US $=Rs 62.59 as on 31st March 2015]



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1.2) About Electro Porcelains Division (EPD), Bengaluru EPD is located at Bengaluru, India and is one of the oldest and renowned manufacturer of Porcelain Insulators for High Tension Power Transmission and Distribution in India. EPD has been engaged in the manufacturing of Porcelain Insulators for Transmission lines since its inception in 1932. During 1980s, BHEL entered into a Technology Tie-up with M/s NGK, Japan for manufacturing of Porcelain Insulators at EPD. EPD manufacturers all ranges of insulators for both AC & DC Transmission in vogue in country. BHEL is the only company in the country offering DC Transmission insulators upto 420 kN rating for ±800 kV HVDC lines. Further, over the period of time, EPD has designed, manufactured and supplied CLR to all the major utilities of the country ranging upto 210 kN insulators for 400 kV AC Transmission Lines. Recently, CLRs for 765 AC application has also been developed and type tested by EPD, Bengaluru. In addition to Transmission Line insulators, EPD, Bengaluru also manufactures Hollow Porcelain Insulators for Instrument Transformers & Bushings upto 765 kV rating.

About Insulator Plant (IP), Jagdishpur: BHEL Insulator Plant, Jagdishpur is the leading manufacturer of High Tension Porcelain Insulators in India. Established in the year 1984 with technological tie-up of M/s NGK, Japan, IP Jagdishpur is serving major transmission utilities in the country with Disc Insulators up to 320 kN EMS for transmission lines up to 765 kV HVAC. IP, Jagdishpur also caters Porcelain hollow insulators upto 66 kV and bus bar support upto 24 kV system. Ceramic Liners (Ceralin) for wear resistant applications is another major product of IP, Jagdishpur. BHEL Insulator Plant, Jagdishpur is spread in about 495,000 sq. meters area, located in Amethi District of Uttar Pardesh, 80 Kms away from Lucknow on Lucknow-Varanasi National high-way and is well connected by railroad and air as well. The plant has well established industrial building of more than 100,000 sq. meters and modern infrastructure for manufacture of the products as detailed above. Power is sourced from local state utility at 11kv with in-house backup generation facility and fuel is environment friendly Natural Gas sourced through Hazira–Bijapur–Jagdishpur (HBJ) gas pipeline.

2) Experience of BHEL in Insulators Business :

BHEL Ceramic Business Unit is a leading manufacturer of high voltage porcelain insulators with over 80 year of experience in designing and manufacturing of insulators. BHEL CBU produces most diverse range of insulators up to the highest voltages in both AC & DC systems, using the latest of technologies and state-of-art manufacturing processes. The company has wide experience in the manufacturing of several types of Disc, Pin and Post insulator used in the power transmission lines upto 765 kV HVAC & ±800 kV HVDC lines. CBU has also developed UHV range of insulators 320 kN & 530 kN HVAC insulators for 1200 kV HVAC transmission system and is put on the national test station of M/s Powergrid. BHEL envisage good potential for Insulators required for the Transmission & Distribution in the Indian Market over the years to come.

3) Scope of cooperation :

BHEL seeks a Prospective Collaborator for entering into a TCA for manufacturing of the Glass Insulator in two stages. BHEL envisage good potential for the Glass Insulators in the Indian Market.



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The TCA should enable BHEL to design, manufacture, assemble, quality control, test and supply Glass Insulators . The detailed terms and conditions for such a paid up license agreement shall be mutually agreed upon. Indicative scope of technology transfer for Glass Insulators is placed at Annexure-1. Business sharing option, during the initial period of technology assimilation by BHEL can also be considered. BHEL intents to follow two stages approach as given below:

Stage 1: Assembly of Glass Insulator with • Glass Shells sourced from OEM • Local sourcing of Metal Components and Binding Material as required for Glass Insulators. • Assembly & Routine Testing at BHEL works with the guidance of OEM • Type Testing at an independent laboratory • Offer the product to Indian & Overseas market by BHEL as a Licensee of OEM (the Licensor) Stage 2 : • Backward integration for Manufacturing of Glass Insulators shells at BHEL plant in

association with OEM (the Licensor).

Presently, the Stage-1 scope is only envisaged for technical cooperation, however Stage 2 shall be considered depending on the market conditions.

4) Prequalification requirements (PQR) :

The Prospective Collaborator shall meet the following pre-qualification conditions as on the date of submission of EoI:

4.1) Prospective Collaborator / Licensor should have at least 5 (Five) years of experience in Glass

Insulators business; should have designed, manufactured, tested and supplied Glass Insulators to power transmission utilities.

Details Product reference of prospective collaborator for major supplies in last 10 years may

please be provided as per Annexure-4 4.2) The prospective Collaborator / Licensor should have designed, manufactured, tested and

supplied at least 50,000 Nos of Glass insulators of 210 kN or above electro-mechanical strength for 345 kV or above voltage transmission line and same should have been in satisfactory operation (to be substantiated by certificate/letter issued by the customer without any adverse remarks) for a minimum period of (2) two years as on the date of submission of EoI.

Indicative technical features of Glass Insulators are provided in Annexure-3

4.3) The prospective Collaborator / Licensor should also have successfully completed at least the

following type tests on Glass Insulator strings of 210 kN standard disc insulators for 765 kV applications as on the date of submission of EoI :



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a. Power Frequency Voltage withstand test (Wet) b. Switching Surge Voltage withstand test (Wet) c. Lightning Impulse Voltage withstand test (Dry) d. Voltage Distribution test e. RIV test

4.4) The prospective Collaborator / Licensor’s financial position should meet the following

requirement: a. Net worth for the last 3 (three) years should be positive. 4.5) The Prospective Collaborator / Licensor should be willing to furnish a joint undertaking/fulfill

other conditions as per the tender requirement of Customers and should be willing on the following aspects:

a) Any design undertaken by the BHEL shall be approved by the Licensor b) Provide approval and monitor the Quality Assurance Programme of BHEL with the approval of

customers. c) Furnish back-up guarantee for individual and overall performance of the products supplied by

BHEL under the Licenser-Licensee agreement. d) Provide guarantee for sequential and timely supply of products and submission of technical

information and data as desired by the customers so as to meet the overall construction schedule.

e) Agree for entering into a Licensor – Licensee agreement with BHEL for a minimum period of

84 months. 4.6) OEMs experience and compliance to PQR detailed above shall be confirmed as per

Annexure- 2

5) Selection of Prospective Collaborator Based on the information provided under this EoI, the Prospective Collaborators (Applicant) shall be technically shortlisted on the basis of the above mentioned PQR and Prospective Collaborators (Applicant) not meeting any of the parameters of Technical Evaluation Criteria of this EoI shall not be considered. The Prospective Collaborators (Applicant) who are technically qualified may be further evaluated on the basis of commercial proposals which shall be invited for the second stage of evaluation.

6) Brief Description of EoI Process:

Any request for further information or clarification on the EoI document may be submitted in writing to GM (TL&JV) at the above address before January 25, 2016. BHEL may respond to the queries raised/clarifications sought to the best of its abilities. However, no extension of the time or date of EoI submission would be granted on the ground that BHEL has not responded to any query/clarification raised by any party. BHEL at its discretion may extend the due date for submission of EoI and the decision of BHEL in this respect would be final & binding on the respondents. The interested prospective collaborators shall ensure that their response along with annexures is received by BHEL on or before February 03, 2016. The response shall necessarily be accompanied with details on company background, Technical features/product catalogue, List of Type Tests conducted by the Party, information on market share, reference list as per



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Annexure-4 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:

General Manager Technology Licensing & Joint Ventures Bharat Heavy Electricals Limited BHEL House, Siri Fort New Delhi - 110049 India Phone: +91 11 66337809/66337213 Mob: +91 9871094069/9818103430 Fax: +91 11 26492974 Email: [email protected] / [email protected]

7) Miscellaneous:

7.1 Right to accept or reject any or all Applications:

7.1.1 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.

7.1.2 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.

7.1.3 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.

7.2 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.



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Annexure-1

Indicative Scope of Technology Transfer

a) Licensing & transfer of technology relating to the design, engineer, manufacture, assemble, quality control, product test, supply and in service testing of Glass Insulators up to 320 kN Rating for 765 kV HVAC Transmission Lines : 1. Manufacture of Glass Disc Insulators in 2 stages viz., Stage 1 : Glass Insulator assembly in BHEL plant, with

• Glass Shells sourced from OEM • Local sourcing of Metal Components and Binding Material as required for Glass

Insulators. • Assembly & Routine Testing at BHEL works with the guidance of OEM • Type Testing at an independent laboratory • Offer the product to Indian & Overseas market by BHEL as a Licensee of OEM (the

Licensor) Stage 2 : Backward integration for Manufacturing of Glass Insulators shells at BHEL, Insulator Plant Jagdishpur in association with OEM.

• Recommend manufacturing & testing facilities • Establishment of process parameters & optimization • Recommend sourcing of raw material & testing

b) Transfer & Training of applicable computer programs including logics.

c) Transfer of improvements/modifications/developments/up gradations carried out by the OEM over the duration of the technology transfer for taking care of new market requirements and obsolescence.

d) Transfer of Site feedback and troubleshooting information.

e) Training of BHEL engineers in the design, manufacture, quality control/quality assurance, testing of the Glass Insulators.

f) Deputation of OEM’s experts to assist BHEL in absorbing the technology for licensed products

g) Support through engineering services from OEM’s design office / manufacturing facilities for licensed products & process.

h) Transfer of information to enable BHEL to source/procure those items, which the OEM sources from outside (as these are not manufactured by the OEM) for use in Glass Insulators.

(SIGNATURE)



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Annexure -2

OEM's Experience in the field of Glass Insulators

Sl. No. Requirement OEM’s

response YES/NO and remarks if any

(a) Whether documentary evidence in support of PQR “prospective collaborator should be an Original Equipment Manufacturer (OEM) for Glass Insulators” have been enclosed

(b) Whether information in support of Pre-Qualification Requirements provided along with documentary evidence have been enclosed

(c) Whether the Prospective Collaborator / Licensor have at least 5 (Five) years of experience in Insulators business.(should have designed, manufactured, tested and supplied Glass Insulators to power transmission utilities)

(d) Whether the prospective Collaborator / Licensor have designed, manufactured, tested and supplied at least 50,000 nos of Glass insulators of 210 kN or above electro-mechanical strength for 345 kV or above voltage transmission line and same should have been in satisfactory operation for a minimum period of (2) two years as on the date of submission of EoI.

(e) Whether the prospective Collaborator / Licensor have successfully completed at least the following type tests on Glass Insulator strings of 210 kN standard disc insulators for 765 kV applications as on the date of submission of EoI :

a. Power Frequency Voltage withstand test (Wet) b. Switching Surge Voltage withstand test (Wet) c. Lightning Impulse Voltage withstand test (Dry) d. Voltage Distribution test e. RIV test

(f) Whether the prospective Collaborator / Licensor’s financial position to meets the following requirements:

a. Net worth for the last 3 (three) years should be positive.



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(g) Whether the Prospective Collaborator / Licensor is willing to furnish a joint undertaking to the customers of Licensee on the following aspects:

a) Any design undertaken by the BHEL shall be approved by

the Licensor b) Provide approval and monitor the Quality Assurance

Programme of BHEL with the approval of customers. c) Furnish back-up guarantee for individual and overall

performance of the products supplied by BHEL under the Licenser-Licensee agreement.

d) Provide guarantee for sequential and timely supply of

products and submission of technical information and data as desired by the customers so as to meet the overall construction schedule.

e) Agree for entering into a Licensor – Licensee agreement

with BHEL for a minimum period of 84 months.

(h) Whether details of company background, product catalogues & certifications have been enclosed

(i) Whether information on market share has been enclosed

(j) Whether OEM’s detailed reference list have been enclosed (k) (l)

Whether OEM’s annual audited financial reports for last 3 years have been enclosed

(m) Whether a summary of experience & reference as per Annexure-4 have been enclosed

(n) Whether the Glass Insulators offered for technology transfer is the latest being marketed by the OEM

(o) Whether customers (end users) letters / documentary evidence for satisfactory operation of Glass Insulators have been enclosed.

(p) Whether the prospective collaborator owns the IPRs for the technology being proposed for transfer under the Technology Collaboration Agreement (TCA) or have unencumbered right from the owner of the IPRs to sub-license the technology, if applicable. If yes, list of such IPRs to be enclosed.

(SIGNATURE)



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Annexure -3

Indicative Technical Features of Glass Insulators proposed for TCA

1. Glass Insulators for 400 kV line

Sl. No Technical Feature Yes or No Remarks if any

1 Type of String : Double ‘I’ Suspension Single Suspension ‘Pilot’ Single ‘Tension’ Quadruple Tension

2 Size of Glass Insulator: (Spacing x Diameter) in mm : (145-170) x (255-305)

3 Minimum Creepage Distance per unit : (320-370) mm

4 No. of individual units per string (Nos) : Double ‘I’ Suspension : 2 x 23 Single Suspension ‘Pilot’ : 1 x 23 Single ‘Tension’ : 1 x 24 Quadruple Tension : 4 x 23

5 Electro-Mechanical Strength of Insulators (kN) : Double ‘I’ Suspension : 120 kN Single Suspension ‘Pilot’ : 120 kN Single ‘Tension’ : 120 kN Quadruple Tension : 160 kN

6 Mechanical Strength of Insulator String along with Hardware Fittings (kN) : Double ‘I’ Suspension : 2 x 120 kN Single Suspension ‘Pilot’ : 120 kN Single ‘Tension’ : 120 kN Quadruple Tension : 4 x 160 kN

7 Service Condition of Glass Insulator 1. Max. ambient temperature : 500C 2. Min. ambient temperature : 00C 3. Relative Humidity (% Range) : 10 – 100 4. Wind Zone (as per IS:875) : 2-3 5. Max. wind velocity (m/sec) : 39 6. Max. altitude above MSL (meters) : upto 1000 m 7. Climate varies from moderately hot and humid tropical climate to cold climate 8. Isoceraunic level (Days/years) : 50



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2. Glass Insulators for 765 kV HVAC line

Sl. No Technical Feature Yes or No Remarks if any

1 Type of String : Double ‘I’ Suspension Single Suspension ‘Pilot’ Single ‘Tension’ Quadruple Tension

2 Size of Glass Insulator: (Spacing x Diameter) in mm : (170 -195) x (280-330)

3 Minimum Creepage Distance per unit : upto 470 mm

4 No. of individual units per string (Nos) : Double ‘I’ Suspension : 2 x 35 Single Suspension ‘Pilot’ : 1 x 35 Single ‘Tension’ : 1 x 35 Quadruple Tension : 4 x 35, 4 x 34

5 Electro-Mechanical Strength of Insulators (kN) : Double ‘I’ Suspension : 160 kN Single Suspension ‘Pilot’ : 160 kN Single ‘Tension’ : 160 kN Quadruple Tension : 210 kN, 320 kN

6 Mechanical Strength of Insulator String along with Hardware Fittings (kN) : Double ‘I’ Suspension : 2 x 160 kN Single Suspension ‘Pilot’ : 160 kN Single ‘Tension’ : 160 kN Quadruple Tension : 4 x 210 kN, 4 x 320 kN

7 Service Condition of Glass Insulator 1. Max. ambient temperature : 500C 2. Min. ambient temperature : 00C 3. Relative Humidity (% Range) : 10 – 100 4. Wind Zone (as per IS:875) : 2-3 5. Max. wind velocity (m/sec) : 39 6. Max. altitude above MSL (meters) : upto 1000 m 7. Climate varies from moderately hot and humid tropical climate to cold climate 8. Isoceraunic level (Days/years) : 50

(SIGNATURE)



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Annexure -4

Reference List: The OEM shall furnish a summary of their product/system reference as detailed below for major supplies in last 5 years

(SIGNATURE)

Sl. No Project name / location

Capacity Year of supply Year of Commissioning

Expression of Interest (EoI) for - Bharat Heavy Electricals of Glass Insulators- Extension of due...

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