China power gear better than Bhel’s
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Sanjay Dutta, TNN | Jul 14, 2011, 12.51AM IST
NEW DELHI: Amid demand from domestic industry for duty barriers against power equipment imports from China, the Planning Commission has said plants set up with Chinese gear have shown better performance than those using items supplied by state-run Bhel.
The panel's report card on the power sector's performance so far in the 2007-12 Plan period and the strategy for 2011-12 also raises concerns over Bhel's management capacity in setting up new plants. It also flags delayed supply of equipment by the company as one of the impediments to increase the pace of generation capacity addition this fiscal.
"Bhel has added new manufacturing capacity but has poor management capacity in setting up new power plants. There has been serious delay in plants where Bhel has supplied T&G (turbine & generator) or boilers. Performance of new power plants based on Chinese equipment is better," the report card says.
Indeed, delay in equipment supply by Bhel has been a recurrent theme in almost all meetings to review the government's capacity addition plan. Major projects, including those that were planned for the Commonwealth Games, have been delayed due to Bhel's failure to deliver key equipment such as turbines, generators and boilers on time.
But the observation on the performance of Bhel's equipment is sure to ruffle many feathers in the government, and will be music to private power firms. Those seeking protection against Chinese imports have been raising doubt over the quality of imported equipment.
Under pressure from domestic industry, the heavy industries ministry has been pushing for duty barriers against Chinese imports. Chinese manufacturers are estimated to have orders of over Rs 25,000 crore from India and the government is unwilling to impose duty barriers on Chinese imports in the ongoing Plan period.
A few years ago, the panel reckoned India's GDP must grow at over 9% for the next 25 years if poverty has to be eradicated completely. To fuel that kind of growth, generation capacity has to grow six-seven times of the 2003-04 level, factoring a 20% reduction in energy use per unit of GDP due to increased efficiency. It could lead to building a capacity of 960,000 MW by 2031-32.
The situation on the ground, however, is stark. Slipping deadlines forced the government to reduce the capacity addition target from 78,700 MW in the 11th Plan to 62,347 MW. Against this, only 34,462 MW has been added during the four years of the Plan. And, a bulk of this capacity has come on stream after exceeding their planned completion.
It looks almost impossible that another 30,000 MW will be added in the remaining months of the ongoing fiscal, the terminal year of the 11th Plan. The tardy progress may also impact the 12 th Five-Year Plan period, starting April 2012.
The government met only 36% of the goal set for the quarter ended March 31. Power secretary P Uma Shankar recently told the panel that only 2,430 MW generation capacity was added in the fourth quarter of 2010-11 against a target of 6,691 MW.
What is more alarming is the fact that but for the third unit of the Wardha-Warora plant in Maharashtra, which was not part of the 2010-11 Plan target, the actual capacity addition would have been even lower. The private sector project contributed 135 MW.
Central sector projects contributed most to the lag, with 10 units aggregating 2,354 MW included in the target. The state sector list had eight units, aggregating 1,695 MW and four units in the private sector with a combined capacity of 1,542 MW.
In addition, some 26 units aggregating 4,868 MW that were to be commissioned in the first three quarters of 2010-11 could not be commissioned even in the fourth quarter. These include three units in the central sector aggregating 1,250 MW, 11 units totalling 2,472 MW and 12 units of 1,145 MW in the private sector.
*ttp://timesofindia.indiatimes.com/business/india-business/China-power-gear-better-than-Bhels/articleshow/9216583.cms
Protectionism!! 
