Bhel concedes to 14 project delays

Mumbai, Mar 29 | Updated: Mar 30 2007, 06:23am hrs
Bharat Heavy Electricals Ltd (Bhel), a key producer and supplier of power plants and equipment, has finally admitted to considerable delays in the completion of 14 power projects, scheduled to be commissioned in the 10th Five-Year Plan with a total capacity addition of 4,665mw. FE broke the news of these delays last month.

This comes in the backdrop of the power ministrys revision of its original target of 41,000mw capacity addition to 32,000mw in the 10th Plan. However, the ministry now says only 23,600mw has been achieved so far.

State-run Bhel, in a recent communication to the power ministry, said the delays in these power projects were largely due to a lack of transportation infrastructure like roads and railway sidings, as well as the requirement of road permits for movement of plant and equipment from state to state. Moreover, suppliers of forgings and castings quoted much longer delivery schedules to Bhel due to the sudden capacity surge in China, it said.

Bhel was awarded 46%, which comes to 18,786mw, of the originally planned 41,000mw, while 56% was to be supplied by others. However, we will be able to complete these projects in June, July and August, said a Bhel source.

Bhel sources also said there were few vendors in the international market for the supply of boiler quality plates and steel, alloy steel piping material, casting and alloy steel forging, thus contributing to the delays.