Dongfang Electric India order book at 28,000 MW - Leading equipment manufacturer of China with a capacity to supply 35,000 MW per annum

Dongfang Electric Corporation Ltd, a leading power equipment manufacturer based in China with a capacity to supply 35,000 MW per annum, has an order book to install 28,000 MW in India in the next 3-5 years.The company, which recently established an Indian subsidiary Dongfang Electric India Ltd in Kolkata, for sales and support services, said the order implementation could see investment of over $2 billion per annum.

Its management on India tour to interact with some customers and business prospects outlined plans, which includes the possibility of further engagement in the areas of renewable energy — wind power and hydel, nuclear power, while focussing on supply of power equipment. The Chairman of publicly listed Dongfang Electric, Mr Si Zefu, said the Indian power sector has transformed over the last four-five years and has now embarked on a major growth path with private sector participation. In an exclusive interaction with Business Line, Mr Zefu, speaking through Mr Luo Xiaoming, Vice-President, International, said the company has changed its initial focus from being an EPC contractor for Indian power companies to an equipment supplier. This change was necessitated as several Indian companies now have the capability to offer EPC services.

“In addition, issue of visas to workers and any delays could potentially delay project implementation leading to slippage of deadlines. Therefore, we consciously decided to focus on equipment supplies. The orders are from JSW Energy, Lanco Infratech, East Coast Energy, some Government-managed companies and few others. We are keen to work on the ultra mega power projects,” he said.

Quality issuesAsked about quality issues, Mr Zefu said, “We would not be making 35,000 MW of power equipment and supplying about 50 per cent of this to markets other than China without quality. In fact, one of the distinguishing factor for us as a Chinese company is we prefer to be a low-key player and stay away from publicity unlike some of the US and European companies. Our work serves as a reference.”On plans for Indian manufacturing base, Mr Zefu said there are at least 5-6 joint venture power equipment companies now at various stages of implementation. The company will evaluate the possibility of setting up base to be competitive. However, it appears it is late to set up a unit here.