Govt says BHEL can’t deliver, to invite global tenders for project

Stating that Bharat Heavy Electricals Limited would not be able to deliver in time, the West Bengal government has decided to invite global tenders for a project to enhance power output by 2012.

Power minister Mrinal Banerjee said the commissioning of the Santaldih Thermal Power Project, slated for March 2007, is already behind schedule because of delay in manufacture of the main plant package by BHEL. He said the government would not like to have a similar experience again.

Banerjee was talking to Newsline during a conference organised by the Indian Electrical and Electronic Equipment Manufacturers’ Association here.

However, BHEL Director (Power) K Ravi Kumar said although the company has an order book bulging with projects, it is still capable of executing projects in time. “The country has adopted an aggressive time frame for capacity addition but there are infrastructure lacunae to match such schedules,” he said.

“At most, delays caused by BHEL extend to three to four months. But lack of proper ports, roads and other infrastructure must also be taken into account for such delays,” he said.
Kumar said BHEL would apply for the project if global tenders are floated.

In 2006-07, BHEL had orders worth Rs 50,000 crore, of which Rs 28,000 crore was the power sector’s share. Out of this, West Bengal government’s orders alone are worth Rs 5,300 crore.

As part of the 10th Five Year Plan, West Bengal was supposed to add 2,670 MW to its output of power from thermal plants. Though the plan ended this March, the state is to start enhancing power generation from around July.

While BHEL has been responsible for supplying the 250 MW main plant package for the Santaldih project, Itochu of Japan has done it for the Bakreswar plant and a Chinese firm for the Sagardihi project.

Although BHEL’s orders for 2006-07 were worth Rs 50,000 crore, orders worth Rs 55,000 crore were still lying pending at the end of the year.