A high-level Government panel has warned of the possibility of an "energy security crisis" in the event of diplomatic differences with China arising in the future.
With well over 33,000 MW of new power capacity coming up using Chinese equipment, even as vendor support for spares and service is almost non-existent in India, the panel has concluded that a "Pokhran-like situation" could arise if bilateral relations turned sour in the coming years. The failure to develop a local vendor base could lead to continued dependence on the Chinese for the entire life of the power station, the panel headed by Planning Commission member, Mr Arun Maira, has warned. Spares and service costs are also exposed to higher uncertainty, the panel has concluded.
Besides, due to the intellectual property rights violations by Chinese suppliers, support from technological leaders from Europe and the US for upcoming supercritical sets will not be available in case of any technical problem, the report has said. Of the 49 orders for supercritical sets awarded in the country so far, over half (26) have been secured by Chinese vendors. Only 12 have been bagged by domestic manufacturers, with the remaining 11 going to international manufacturers from Russia, Korea and Japan. Steps to be taken The Cabinet Secretary is slated to chair a meeting on May 25 to consider implementing recommendations of the panel. The report has also taken note of specific instances of malfunctioning of Chinese equipment deployed at various plants.
Besides, availability of manuals only in Chinese has also been cited as a major impediment. Orders should be awarded after factoring in the life-cycle costs of Chinese equipment and not just upfront costs, the panel has said for future contracts.
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