Unfair to blame us for delay in power projects: BHEL

Under attack for delays in completion of power projects, state-owned equipment manufacturer Bharat Heavy Electricals (BHEL) has asserted that it was unfair to make the PSU a scapegoat when there were several other factors responsible for the lag.

This is a feeling expressed by a large cross section of the employees in the PSU, senior BHEL official said, adding that this was affecting the morale of the workers.

In many cases, customers delay critical inputs on time like Turbine Generator foundation, site clearances, environmental clearances or even availability of fuel. Even the most basic input – availability of land is sometimes not ensured on time, they said.

While sometimes there are problems with respect to the Power Purchase Agreement on which the financial viability of the project hinges.

"BHEL is just an equipment supplier and at best this constitutes around 40-45 per cent of a power project, so how can the entire blame be passed on to it," says an officer on condition of anonymity.

In the Tenth Plan, BHEL got around 50 per cent of the orders while the balance went to private sector companies. While BHEL was able to deliver 80 per cent of its target despite bunching of orders, the private sector could manage just about 50 per cent.

Even then BHEL was targeted by all quarters while private companies escaped criticism, they said.

BHEL, on the other hand, has to contend with a shortage of critical inputs like castings and forgings of which there are very few suppliers in the world.

Despite enhancing its capacity to 15,000 Mw per annum, the company has to bear the brunt as Balance of Plant (BoP) vendors in the country, which supply low tech items like coal mills and ash handling systems have failed to raise their capacities.

BHEL has in hand orders worth over Rs 1,32,000 crore, which would be completed in the next three years and the company is confident of meeting all the deadlines as it has already increased its capacity to supply equipment for 15,000 Mw annually from 10,000 Mw earlier.

The company is also set to further enhance its production to 20,000 Mw per annum and the proposal has been cleared by the board.

BHEL's assertion comes in the wake of power ministry's complaint that short supply of equipment by BHEL was one of the reasons for falling short of targets every year.