BHEL Order book
NEW DELHI: Unusual times call for unusual measures. At a time when economic recession is deepening, the government has leaned on a private sector
biggie to divert a major supply order that had appeared headed for China to the public sector.
Sources said that at the Centre's behest, the steel-to-power conglomerate led by Congress lawmaker Naveen Jindal has agreed to order from BHEL instead of from the Chinese manufacturers the group preferred. The first order worth Rs 10,000 crore for equipment to generate 2,400 mw is to be placed shortly, and there is scope for another Rs 15,000 crore worth orders for 2,580-3,200 mw.
On record though, officials denied any pressure and said these were "purely commercial decisions taken by independent corporates". Asked about the issue, minister of state for power Jairam Ramesh told TOI, "The government's not there for commercial discussions or decisions. Our (government's) job is to first facilitate and then felicitate (growth in generation capacity)."
But sources said that it required more than a nudge to get the Jindal group to recast its shopping list. On his part, Jindal confirmed ordering equipment for "about" Rs 10,000 crore from BHEL but declined to comment further. "Let's focus on what has been finalised... there's no point in talking prematurely about whether this will happen or that. When something happens, we'll let you know," he told TOI on Thursday.
Domestic manufacturers such as BHEL have steadily lost out as Chinese manufacturers have emerged as preferred suppliers for power projects in recent times. Along with the rise in their popularity, questions over their quality and reliability have also arisen in various qurters of the government, including the Central Electricity Authority.
But it took the recession and the alarming prospect of unemployment for the government to use its "persuasive power" to shape the preferences of a big power producer.
In the Jindal group's case, Jindal Power Ltd, a subsidiary of Jindal Steel and Power Ltd, will buy from BHEL boilers, turbines and generators for four units of 600 mw each. In the next stage, the company has the option of sourcing four units of 'supercritical' size - 660 or 800 mw each. Jindal is working on constructing two power plants - in Chhattisgarh and Jharkhand.
JSPL is India's third-largest steelmaker and is a major player in power generation. It has recently forayed into oil exploration and has drawn up plans to synthesise oil from coal, commonly called coal-to-liquid projects. Jindal Power has a capacity of 1,000 mw and JSPL about 700 mw. The group has lined up major expansion in power.
BHEL is India's prime power and heavy equipment maker but has been hamstrung by manufacturing capacity. It is now expanding capacity through joint venture route and has set up a venture with state-owned generation utility NTPC. The company had seen flight of business as private promoters of major power projects were opting for Chinese manufacturers. But recently, serious doubts have been raised over quality of Chinese supplies and the Jindal order will be a big boon for the company.
biggie to divert a major supply order that had appeared headed for China to the public sector.
Sources said that at the Centre's behest, the steel-to-power conglomerate led by Congress lawmaker Naveen Jindal has agreed to order from BHEL instead of from the Chinese manufacturers the group preferred. The first order worth Rs 10,000 crore for equipment to generate 2,400 mw is to be placed shortly, and there is scope for another Rs 15,000 crore worth orders for 2,580-3,200 mw.
On record though, officials denied any pressure and said these were "purely commercial decisions taken by independent corporates". Asked about the issue, minister of state for power Jairam Ramesh told TOI, "The government's not there for commercial discussions or decisions. Our (government's) job is to first facilitate and then felicitate (growth in generation capacity)."
But sources said that it required more than a nudge to get the Jindal group to recast its shopping list. On his part, Jindal confirmed ordering equipment for "about" Rs 10,000 crore from BHEL but declined to comment further. "Let's focus on what has been finalised... there's no point in talking prematurely about whether this will happen or that. When something happens, we'll let you know," he told TOI on Thursday.
Domestic manufacturers such as BHEL have steadily lost out as Chinese manufacturers have emerged as preferred suppliers for power projects in recent times. Along with the rise in their popularity, questions over their quality and reliability have also arisen in various qurters of the government, including the Central Electricity Authority.
But it took the recession and the alarming prospect of unemployment for the government to use its "persuasive power" to shape the preferences of a big power producer.
In the Jindal group's case, Jindal Power Ltd, a subsidiary of Jindal Steel and Power Ltd, will buy from BHEL boilers, turbines and generators for four units of 600 mw each. In the next stage, the company has the option of sourcing four units of 'supercritical' size - 660 or 800 mw each. Jindal is working on constructing two power plants - in Chhattisgarh and Jharkhand.
JSPL is India's third-largest steelmaker and is a major player in power generation. It has recently forayed into oil exploration and has drawn up plans to synthesise oil from coal, commonly called coal-to-liquid projects. Jindal Power has a capacity of 1,000 mw and JSPL about 700 mw. The group has lined up major expansion in power.
BHEL is India's prime power and heavy equipment maker but has been hamstrung by manufacturing capacity. It is now expanding capacity through joint venture route and has set up a venture with state-owned generation utility NTPC. The company had seen flight of business as private promoters of major power projects were opting for Chinese manufacturers. But recently, serious doubts have been raised over quality of Chinese supplies and the Jindal order will be a big boon for the company.
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