Equipment supplies to power sector: Chinese vendors catching up BHEL

Due to substantial cost and time implications and limited manufacturing capacity of the state-run BHEL, contracts for a large number of power projects have already been  awarded to the various Chinese equipment manufacturers. In the forthcoming days, BHEL, the country's largest heavy-equipment manufacturing firm, is likely to face a far stiff competition from its Chinese counterparts, as the trend in ordering of the contracts for power plants to the Chinese firms have witnessed a phenomenal rise since the beginning of the 11th Plan period. With no contracts for the 10th Plan projects in their order books, the Chinese firms have, till recently, managed to acquire around 25% share in the supply of power equipment to the projects that have been planned for construction during the 11th Plan programme. 

 Till the end of 2009-10 fiscal, major Chinese equipment makers such as, Shanghai Electric, Dongfang, Harbin, SEPCO and CNTICZ had commissioned power plants worth over an aggregate capacity of 4,395 MW, out of the 18,211 MW capacity added, over the first three fiscals of the ongoing Plan, in the country. As per an estimate of the Advisory Group to the Power Ministry, the participation of the Chinese-firms, in the country's capacity addition is expected to increase to 12,618 MW, which would be around 39% of the total capacity of the projects slated to be commissioned by the end of the 11th Plan. Thereby, posting a three-fold growth over the capacity that were realized during the first three fiscals. 

The increasing participation of Chinese vendors in the development of the country's power infrastructure can be attributed to the fact that, most of the projects awarded to BHEL has, over the years, have suffered frequent delays due various reasons including, delay in equipment supply, slow progress of civil work, lack of adequate skilled manpower and machinery as well as due to delay in import of components such as, turbine modules and CC-pumps. Commissioning of Aravali Power's Jhajjar TPP, Tata Power's Mithon plant, Mahagenco's plant at Bhusawal and Ukai, Damodar Valley Corporation's project in Durgapur, Pragti Power's gas-based plant in Delhi have been severely affected due to delay in completion of work by BHEL.

 The 11th Plan projects that are being developed by the Chinese-contractors include, West Bengal Power Development Corporation Limited's (WBPDCL) 600 MW Sagardighi and 300 MW Durgapur TPP in West Bengal, Lanco Infratech Limited's (Lanco) 1,200 MW Amarkantak and Anpara 'C' TPPs, Haryana Power Generation Corporation Limited's 600 MW Yamuna Nagar and 1,200 MW Hissar projects, amongst others.