The Hindu Business Line : BHEL keen to replicate TN model in other States

New Delhi, Nov. 22 The stage could well be set for the standardisation of the new generation 800 MW “supercritical” thermal sets in the country. Bharat Heavy Electricals Ltd, the country’s largest power equipment manufacturer, is in talks with a bevy of States to form joint venture companies to execute coal-fired projects based on the new technology units.

The move, on the lines of the pact inked by the equipment major recently with Tamil Nadu, is aimed at executing a certain minimum number of projects in order to sufficiently absorb the new technology. BHEL’s dialogue with the States comes in the wake of lack of progress in talks with its largest customer, NTPC Ltd, for placement of bulk orders for its upcoming supercritical technology-based projects.

Units based on the supercritical technology, as opposed to the conventional sub-critical technology sets of 250 MW and 500 MW being used in the country so far, are considered to be superior in terms of higher plant efficiencies and economies of scale and in being environment friendly. The technology is, however, yet to be tried out in the country, even though BHEL has been ready with it for the last two years and has been keen to test out the technology following its technical tie-ups with Alstom of France and Siemens of Germany to manufacture boilers and turbine generators respectively. In case of the 500 MW sets, BHEL had established the technology by the eighth set that it executed.

In talks with 4 States

“We are looking at replicating the Tamil Nadu model in other States. This is one of the best ways to absorb the technology. We are talking to 3-4 States,” BHEL’s CMD, Mr A. K. Puri, told Business Line. BHEL could be looking at up to eight such projects in these States, all of which would utilise 800 MW sets. “We are looking at 800 MW sets for all of these projects under discussion since standardisation has its advantages,” Mr Puri said.

BHEL had earlier sought bulk orders from NTPC Ltd for the power major’s upcoming supercritical technology-based projects to be given to it on a negotiated basis in order to sufficiently absorb and indigenise the technology on executing a certain minimum number of projects. Talks in this regard with NTPC, however, failed to make much headway and BHEL lost out on the former’s first set of supercritical-technology based projects to Russian firm Power Machines (which is implementing the 3x660 MW plant at NTPC’s Barh project) and Korea’s Doosan (which is implementing the 3x660 MW plant at NTPC’s Sipat station).

Late last month, BHEL made a breakthrough and signed a pact with Tamil Nadu Electricity Board (TNEB) for creating a joint venture company to set up a 1,600 MW-project, comprising two 800 MW supercritical units, in Tuticorin district.

Joint venture with TNEB

TNEB and BHEL would each have 26-per cent equity in the proposed joint venture and the rest would be contributed by financial institutions.

The joint venture company is expected to be in place in about three months and work on the project is expected to commence thereafter. The land for the project has already been identified and the project is expected to be operational by 2011.

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