Ramesh wants Bhel standard, local manufactures for power equipment

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Kolkata, Apr 18: The Union government will try to standardise power projects to ensure that only technologies proven in Indian conditions are used, minister of state for power and commerce Jairam Ramesh said here today.

He said power projects with imported equipment are not proving to be viable, hinting at a move against imports of entire plants.

“We found that 20% of the 78,000mw capacity going be added during the 11th Plan period will have the main plant package imported directly from China. But the main plant package of 600mw each imported from China and already used in West Bengal’s Sagardighi and Durgapur projects have proved inefficient in operating with Indian coal, which has a high ash content,” Ramesh said.

The government-owned Bharat Heavy Electricals Ltd (Bhel), which had a monopoly when imports were not allowed, has been unable to meet the demand for power plant equipment despite working three shifts.

Last year, power minister Sushil Kumar Shinde had said Bhel had been asked to compete for new projects via open global tenders. This had opened the floodgates to Chinese manufacturers. “Bhel has proved (itself) with 500mw plant packages and we are insisting that the Bhel standard is implemented in all the Indian power projects,” Ramesh said.

He made clear that the government is not eager to put Bhel under the adverse competition originating from imports of plant packages and it is taking a protective stand.

Ramesh said that while Bhel is increasing its equipment-making capacity from 10,000mw at present to 15,000mw by 2011, the private sector Larsen & Toubro is setting up a facility of 4000mw capacity per annum at Hazira.

Alstom and Alsando are already in talks with the government for setting up boiler making units and the proposed joint venture of power utility NTPC Ltd and Bhel of 4000mw capacity will be commissioned by 2012.