Chinese equipment suppliers pip BHEL in meeting deadline

Chinese power equipment suppliers have pipped their largest Indian counterpart, Bharat Heavy Electricals Ltd (BHEL), in meeting delivery commitments, a power ministry study shows. Foreign companies, including Shanghai Electric Corp , Donga Fang Electric, SEPCO Electric Power and Harbin, met 85% of their delivery obligations, as compared to BHEL's 51%. 

Equipment for about 33% of power projects in India is being imported from China . Of the 6,218 MW capacity projects planned with Chinese equipment in 2010-11, plants with generation capacity totaling 5,293 MW went on stream. However, BHEL could commission only 5,721 MW of the committed 11,302 MW capacity addition, the study reveals. 

The country was able to add only 12,161 MW of generation capacity last fiscal against a target of 20,359 MW. However, this is the highest-ever capacity addition achieved in a single year so far. 

BHEL chairman and managing director B P Rao could not be contacted for comments. Last week, Rao had said Chinese equipment were less efficient. Private developers, the biggest consumers of Chinese equipment, met 74% of their target, while central power producers achieved 60% and state utilities 43%. 

The report says 74% of the delayed projects could have come on stream as the hurdles were within control of project authorities and contracting agencies. 

According to a senior power ministry official, while BHEL takes about 36 months to commission a 600 MW unit, the Chinese take about 30 months. "Chinese companies have standard designs and they simply assemble parts using nuts and bolts at any site, whereas BHEL takes more time in welding. So far, we have found that performance-wise both equipment are at par," the official said. The ministry has asked the Central Electricity Authority to analyse the performance of Chinese sets, the official added.