Power and heavy industries ministries have once again locked horns over the delays in implementing the government?s capacity addition programme. While the power ministry has put the blame squarely on Bhel for delaying equipment supplies, creating problems in commissioning projects, heavy industries ministry, which exercises control over the PSU, has washed its hand of over the allegations. The latter also suggested that power projects are delayed due to other reasons.
In a letter to heavy industries secretary S Sundereshan, power secretary P Uma Shankar has said that a few gas and coal-based based power projects, scheduled for commissioning in the final years of the 11th Plan, have overshot the targets by several months as milestones committed by Bhel during the secretary level review meetings have not been achieved. He has also expressed fear that the delay could seriously impact capacity addition programme.
The government originally fixed a target to achieve 78,700 mw of new generation capacity in the 2007-12 period. It was, however, scaled down to 62,000 mw mid-way of the plan period as projects faced problems on equipment supplies, environmental clearances, land acquisition and financing. The government now faces the prospect of ending the plan period with new capacity of mere 50,000 mw.
?The power ministry is concerned that in the final year of the Plan when 20,000-30,000 mw of projects were required to be commissioned, will need with less than half of intended capacity being put up. Work on several 11th plan gas-based projects are moving at fast and ministry now wants to see that at least these are completed before March 31, 2012 to show a relatively better picture on capacity addition programme,? said a government official involved in the process to finalise annual power generation targets.
A Bhel official, who asked not to be named, said that the company is not faltering in delivery for all projects and often developers are to be blamed for changing the delivery schedules or delaying projects as they don’t have one clearance or the other.
Bhel, which has capacity to produce 15,000 mw of equipment annually at present supplies to the needs of more than 70% requirements coming from power projects. The company?s order book is full for several years but has not got any new orders in the first quarter of current fiscal due to slowdown globally.
In the letter the power ministry has highlighted three gas based projects Pragati CCPP (1500 mw), Hazira CCPP (350 mw) and Pipavav CCPP Block I & II (each of 351 mw), where Bhel is an EPC contractor and even today these projects are much behind schedule though they were supposed to be commissioned in 2010-11.
Both Planning Commission and the Power Ministry have regularly charged the company for delays in supply that resulted in huge slippage in capacity addition during the 10th Plan continuing into 11th with expectation that only 50,000 mw of the proposed 62,000 mw may be realised by March end 2012.