Processing .....please wait.. 
The article has been forwarded.... 
BHEL capacity under-utilised in Tenth Plan: official
Thursday, 16 November 2006, 20:30 IST
New Delhi: Defending itself against allegations that it was largely responsible for the shortfall in new power generation capacity, Bharat Heavy Electricals Ltd (BHEL) on Thursday said the problem lay with delayed orders that did not let them utilize their full capacity.
"In 2005-06, BHEL did not even get orders for 4,000 MW power generation machinery. In fact, so far during the Tenth Plan we have been able to utilise hardly 60 percent or 18,000 MW as against our capacity of 30,000 MW," said the state-owned company's Chairman and Managing Director A.K. Puri.
BHEL, which has been under pressure to raise equipment manufacturing and project commissioning capacity, denied that it was largely responsible for India's failure to achieve targets for increasing power generation capacity.
As against a target of 41,000 MW additional power generation capacity during the 2002-07 Tenth Plan period, India expects to complete only about 30,000 MW by March 2007.
India aims to raise power generation from 128,000 MW to 207,000 MW by 2012.
Power Secretary R.V. Shahi Thursday laid 75 percent of the blame on the inability of BHEL to cope with the orders for supply of machinery and project implementation.
"As Power Minister Sushil Kumar Shinde pointed out, there is considerable delay in bringing a project to the stage of placing orders for machinery and equipments. If you don't order on time how do you get the machinery in time to meet the scheduled target for project completion?" Puri sought to know.
"Now there is a bunching of orders taking place," Puri told IANS on the sidelines of a power ministers' conference.
Until now, the company had utilised its unused capacity to expand exports and undertake orders for machinery from other industries.
But now the demand for machinery has suddenly escalated -- during 2006-07, it was for 20,000 MW with India stepping up pace to complete many of the projects under implementation.
To meet the enhanced demand, BHEL has embarked on a 
12 billion investment plan for modernisation and enhancement of capacity of its total power generation sets from 6,000 MW to 10,000 MW.
"By December 2007, we will have raised our production capacity to 10,000 MW and will be able to meet the domestic demand. We will be able to meet demand for 50,000 MW from 2007-12," said Puri.
With the government having allowed power project developers to source machinery from other sources including overseas, Puri admitted to facing considerable competition from overseas bidders for Indian power projects.
He expected around 22,000 MW machinery to be sourced from overseas given the increasing number of foreign players bidding for power project tenders.
With BHEL amending its article of association in September, the company is now looking "overseas for acquisition of a hi-tech company that would help us get better technology input", said Puri.
It is particularly looking at western Europe.
BHEL, which is celebrating its golden jubilee, recently tied up with French power equipment major Alstom for technology input for manufacture of hydro turbine generator sets of higher rating and advanced class gas turbines.
BHEL expects to utilise Alstom technology when it bids for some of the ultra mega power projects of 4,000 MW being planned.
Source: IANS
12 billion investment plan for modernisation and enhancement of capacity of its total power generation sets from 6,000 MW to 10,000 MW.
"By December 2007, we will have raised our production capacity to 10,000 MW and will be able to meet the domestic demand. We will be able to meet demand for 50,000 MW from 2007-12," said Puri.
With the government having allowed power project developers to source machinery from other sources including overseas, Puri admitted to facing considerable competition from overseas bidders for Indian power projects.
He expected around 22,000 MW machinery to be sourced from overseas given the increasing number of foreign players bidding for power project tenders.
With BHEL amending its article of association in September, the company is now looking "overseas for acquisition of a hi-tech company that would help us get better technology input", said Puri.
It is particularly looking at western Europe.
BHEL, which is celebrating its golden jubilee, recently tied up with French power equipment major Alstom for technology input for manufacture of hydro turbine generator sets of higher rating and advanced class gas turbines.
BHEL expects to utilise Alstom technology when it bids for some of the ultra mega power projects of 4,000 MW being planned.
Source: IANS